A recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index report revealed that home builders expect a mix of demographic, economic, and technological forces to shape the long-term health of the home building industry and housing demand over the next decade.
Interestingly, 61 percent of builders see home energy costs as among the factors that could drag down demand. This week, Insulation Institute highlights three ways home builders are increasingly leveraging home energy performance to persuade hesitant buyers that they can afford a home if its energy costs are lower.
The Big Picture Trends Shaping Energy-Efficient New Home Construction
Across the home building industry, three distinct strategies are emerging among home builders when it comes to home energy performance:
- Designing for lower monthly bills (not just a lower sale price)
Increasingly, home builders are designing homes with high-performance insulation, airtight construction, more efficient HVAC systems, and energy modeling reports. Many of these homes are 40 to 50 percent more energy efficient than the typical new home. That’s important because, according to ENERGY STAR, the typical U.S. homeowner spends $2,060 annually on home energy costs, with a range of $2,000–$3,000 for all homeowners. Better insulation and windows can significantly reduce a home’s average utility costs.
From production to custom, builders, including Garbett Construction and NS Builders, are choosing fiberglass and mineral wool insulation for their high-performance homes.
- Designing Net Zero and Climate-Resilient Homes
Zero Energy-ready homes were once far more common than Net Zero homes; however, Net Zero home construction is rapidly growing, transitioning from a niche market to the mainstream as builders increasingly incorporate solar into new homes. By designing for long-term energy efficiency and resilience, builders like North Carolina-based Nicholson & Sun are anticipating buyers’ needs and energy cost concerns (and also considering resilience).
- Making Energy Performance Visible to Buyers
Smart builders are drawing customers by making home energy performance visible to home buyers. According to RESNET’s 2025 Annual Report, 34 percent of all one- and two-family homes built in 2025 (420,135 homes, to be exact) were HERS-rated. Collectively, those homes delivered $452.9 million in annual energy cost savings. Builders who put energy performance details up front—so buyers don’t have to hunt or, worse, guess—are making a smart move to attract prospective buyers.
Conclusion
Managing the cost of ownership, especially for entry-level homebuyers, is key to improving homeowner affordability. The industry’s leading builders are touting the lower ownership costs of a more energy-efficient new build.
Are you seeing other ways that builders are responding to buyers’ energy cost concerns?