Thinking of Going Green? Tips for Buyers
You may be more environmentally aware than you think, especially when shopping for just the riught home. A recent survey conducted by the National Association of Home Builders (NAHB) reported that more than 65% of home buyers say they want an environmentally friendly home. However, just 15% of those surveyed said that they are willing to pay more for a home with these types of features. Most, though, cite energy efficiency as a top priority, regardless of race or ethnicity.
An Interesting Development
When NAHB changed the phrasing of a question to emphasize the benefits of green-oriented features that would help keep costs in line, more buyers said they would be willing to pay extra. Here’s an example. Buyers were asked whether they they would prefer a home that’s highly energy efficient or one without such features with a price that’s 2% to 3% less, more than 80% of respondents indicated they would choose the more expensive but energy efficient home, according to the survey.
More Survey Results
Another aim of the NAHB survey was to discover whether ethnic differences had an effect on housing preferences, especially regarding energy saving features. For example, the survey reported that whites would be willing to pay nearly $7000 more for a home with energy-saving features, while African-American buyers indicated they would pay about $7500 more. Asian buyers said they would pay just over $8000 more for such a home and Hispanics were willing to pay the most, slightly more than $9000.
Bottom line? Although more expensive, energy-efficient homes are highly desirable across many races and ethnicities in the US.
Source: “What Home Buyers Really Want: Ethnic Preferences (Part IV),” National Association of Home Builders’ Eye on Housing Blog (April 3, 2014)