California Homebuyers Want to Go Green With Energy Efficient Homes
In a recent study, 15 percent of homebuyers in California were willing to pay more for a new home if it was energy efficient, meaning it would save them $1,000 per year on utility bills. Some buyers were even willing to pay as much as $2,200 to get a green home certification, ensuring that their new home meets above-code health standards, reduces allergens, and has fresh air ventilation.
Energy-efficient homes reduce the cost of heating, cooling, and electricity
Although the energy efficiency of new homes is getting better, some new homebuyers are skeptical. While California officials expect energy-efficient homes to reduce heating, cooling, and electricity costs for homebuyers by ten to twenty percent over 30 years, the cost of these new homes is going to be higher upfront. But, some builders argue that the savings will offset the increased costs and may even make it worthwhile to purchase an energy-efficient house.
Increasing the efficiency of homes can reduce operating costs for homeowners in the long run and reduce the likelihood of mortgage default. Studies have shown that energy-efficient homes cut the risk of default by 33 percent. And, in addition to being a great investment, energy-efficient homes can be affordable for prospective homeowners. Many banks and credit unions take energy efficiency into account when qualifying prospective borrowers.
They reduce the risk of wildfires and earthquakes
The state of California has a long history of disasters, and recent fires have highlighted the need to proactively prepare for and mitigate the risks of wildfires and earthquakes. While this will take years to implement, policymakers need to act now to ensure resources are delivered to at-risk communities, and incentives are put in place to divert development away from those areas. The author is Ryan Richards, senior policy analyst for the Center for American Progress. He acknowledges the help of Olugbenga Ajilore, Rejane Frederick, Kate Kelly, and other researchers for reviewing and editing this report.
One way to ensure an energy-efficient home in California is to build it with insulated concrete from construction. This construction method is becoming increasingly popular in California. These homes are not only energy-efficient but also fire and earthquake-resistant. With the emergence of climate change and the growth of urbanization, California is faced with a growing risk of earthquakes and wildfires. Therefore, new construction must incorporate materials that can withstand tremors and wildfires.
They reduce the cost of water conservation
Using water and energy-efficient home technologies can save homeowners a significant amount of money. Over the decade, the average California homeowner can save more than $27,000 in energy and water bills. That amount can go toward a child’s college fund or a nice vacation. And, what’s more, the rebates can be used to help homeowners upgrade appliances and fixtures that conserve water and energy.
Today’s California homebuyers are increasingly concerned with earthquake and wildfire risks. As a result, they’re also conscious of water conservation efforts due to the drought. Many California homebuyers are integrating water-saving features into their homes to reduce the cost of these risks. They’re also concerned about the future of climate change, and two-thirds of young adults believe that homes will be affected by it in their lifetime.
They command a higher price tag
Across metro areas, energy-efficient homes are increasing in popularity. According to a new study, buyers willing to pay a higher price tag for green homes are more likely to be sold. In fact, the median home price in these cities is higher than in the rest of the country. This may be because of the “Prius effect,” wherein consumers’ attitudes toward the environment are measured by the percentage of hybrid-auto registrations in the area.
In addition to helping save energy and money, greener homes are also more comfortable to live in. Energy-efficient homes in California also provide greater health benefits and comfort. As a result, buyers want to buy these homes, but the downside is that they tend to command a higher price tag. But it’s worth the extra money. This trend has been gaining momentum throughout the nation, so California homebuyers may want to consider this option.