Homebuyers' Interest in Energy Efficiency Increasing
NAR’s Realtors Residential Sustainability Report finds that homebuyers and owners are interested in sustainable features that provide financial savings.
WASHINGTON — Sustainable features, particularly those that reduce costs or offer financial savings, are increasingly influencing home search and remodeling decisions, according to new findings from the National Association of Realtors® 2025 Realtors® Residential Sustainability Report.
This year, NAR surveyed its residential-focused members about sustainability issues facing the industry. The report found that more than two in five agents (42%) worked with a property that had green features over the past year.
Customer questions about energy efficiency are becoming more common, though still not widespread. The share of respondents who said clients never ask about upgrades dropped sharply to 29% from 57% last year. Rarely is now the most frequent response at 42% – up from 7% in 2024. Another 21% said clients ask sometimes, and 6% said always/often.
"Housing affordability continues to challenge homebuyers, so sustainability can sometimes be pushed to the back burner as buyers search for the ideal home," said Jessica Lautz, NAR deputy chief economist and vice president of research. "However, many still seek sustainable home features to reduce their environmental impact as well as heating, cooling, and commuting costs."
"Some homeowners may need to turn to remodeling upgrades to embrace sustainability, particularly as the age of America's housing stock increases due to persistent underbuilding," Lautz added.
Additional findings from the report:
- 37% of agents cited windows, doors and siding as the most important green home features for clients.
- 47% of agents said financial incentives (e.g., tax credits or rebates) are the top drivers of demand for sustainable homes, followed by higher resale value (31%) and consumer awareness of energy savings (30%).
- 58% of agents cited understanding how solar panels impact transactions as their biggest sustainability knowledge challenge, followed by valuing homes with solar panels (52%).
- 58% of agents said fewer than one-fourth of their clients consider climate or environmental risk when purchasing a home.
© 2025 National Association of Realtors® (NAR)