Report Shows Interest in Energy Efficiency Growing

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The National Association of Realtors (NAR) recently released its 2025 Residential Sustainability Report, showing increasing interest in home energy efficiency. Consumer interest in residential energy efficiency isn’t new, as efficiency tops the list of most desired features in a home. What’s striking this year is that more consumers than ever are specifically asking about energy efficiency.

Survey Findings on Sustainability Lead with Efficiency

In April of this year, NAR surveyed its residential-focused members about sustainability issues facing the industry. The findings reveal some key facts, including:

Client interest in energy efficiency is increasing. Respondents report that more of their clients are asking about energy efficiency this year than last. Last year, 57 percent of respondents said that clients never asked about energy efficiency, however, this year, just 29 percent said the same.

Financial incentives drive demand. Close to half of respondents (47 percent) said financial incentives such as tax credits or rebates would increase demand for sustainable homes the most, followed by higher resale value (31 percent), and consumer awareness of energy cost savings (30 percent).

REALTORS are mostly knowledgeable about energy efficiency topics. Many respondents are very aware of energy-efficient features in homes, including energy-efficient appliances (66 percent), solar panels and renewable energy systems (52 percent), smart home technology for energy management (39 percent), and advanced insulation and air sealing (39 percent).

Respondents are familiar with most home certification programs. REALTORS indicated they are most familiar with ENERGY STAR for Homes (52 percent), HERS-rated homes (28%), and LEED for Homes (26 percent). Yet, 57 percent said they are unsure if homes with green certifications spend more or less time on the market.

Two out of every five REALTORS worked with green properties. Forty-two percent of respondents had been involved with a property with green features in the past 12 months. Yet, the same percentage noted that the MLS green data fields are under-utilized, with nearly half (47 percent) of those with access not using the data.

Key Takeaways

Thirty-six percent of respondents sometimes educate clients about sustainability features in a home, but an equal percentage rarely do. Twenty-one percent said they never discussed sustainability features with clients. This is a lost opportunity to inform homeowners why these features will matter in the long-term cost of operating a home.

Since most respondents (56 percent) say that they are not sure that home appraisers in their area recognize the added value of sustainable home features, a more concerted effort to work with appraisers is warranted.

To read the full report, click here.