In the face of growing climate change concerns and rising energy costs, energy-efficient homes are becoming increasingly popular housing options among homebuyers. As Millennials and Gen Z inch closer to becoming the lion's share of buyers in the housing market, some builders are seeing customer demands shift toward eco-friendly “passive home” options.
As home building evolves to meet the green values of younger generations, we’ve laid the foundation for building an energy-efficient home and why it may be the perfect option in today’s economy.
Energy-Efficient Homes — What Are They?
In simple terms, an energy-efficient home uses less energy and reduces waste while keeping occupants comfortable. The primary goals of owning a green home include reducing energy usage, lowering utility bills, and minimizing environmental impact.
These homes reduce greenhouse gas emissions and non-renewable resources for increased environmental protection and stability. While the initial cost of an eco-friendly house is typically a 5-20% premium over conventional homes, the long-term savings on utility bills and economic resources generally outweigh the initial price tag.
How to Build an Energy-Efficient Home
Though building an energy-efficient home is not inherently difficult, the process requires greater attention to detail, a comprehensive and long-term plan, and expensive upfront costs. Below are critical materials to consider for builders interested in offering buyers greener housing options.
- Insulation: Proper insulation throughout the home reduces heating and cooling costs by improving comfort and preventing heat loss and gain throughout the year. Focus on flooring, walls, ceilings, and basements, using eco-friendly materials like spray foam, rigid foam, and fiberglass insulation.
- Low-E windows: Low-E, or low-emissivity glass, reduces the amount of heat loss in the winter and heat gain in the summer. The windows reflect the heat radiation, featuring a thin, microscopic coating on the glass (usually made of metallic oxide).
- High-efficiency HVAC systems: These systems are designed to provide the same comfort level as standard systems while running on less energy. They typically have a higher rating for the Seasonal Energy Efficiency Ratio (SEER), which measures how efficiently an air conditioner or heating pump uses energy. To be considered energy efficient, these should have a rating of 18 or higher.
- Smart thermostats: Installing a smart thermostat automates temperature adjustments based on user preferences and occupancy for optimal performance. This technology reduces manual intervention and energy usage and is responsible for a home’s heating, air conditioning, and ventilation systems.
- Energy-efficient appliances: Installing eco-friendly appliances is a significant component of building an energy-efficient home. Consider appliances like dishwashers, refrigerators, washing machines, and dryers, and replace them with ENERGY STAR-certified appliances. A program backed by the U.S. Environmental Protection Agency (EPA), this certification signifies that the appliances meet the energy efficiency criteria and work to reduce electricity and/or water use.
- Solar panels: Also known as photovoltaic (PV) panels, these devices convert direct sunlight into electricity. Composed of solar cells (usually made of silicon), solar panels replace traditional electricity sources such as fossil fuels.
- Tankless water heaters: Tankless water heaters can reduce energy use by almost 34%, heating water on demand rather than storing heated water like traditional heaters.
- LED lighting: Compared to traditional incandescent bulbs, LED lights convert electricity into light, using energy and light more efficiently with reduced heat generation. They typically use up to 75% less energy than traditional bulbs and offer longer lifespans.
Pros and Cons of Being an Energy-Efficient Home Builder
Sound like an option you’d like to add to your product offering? Let’s break down the pros and cons:
Pros of building an energy-efficient home
- Increased property value: The property value of an energy-efficient home is trending upward, making it a highly desirable option in real estate.
- Healthy environmental impact: By reducing energy usage using more sustainable systems, these homes contribute to a healthier environment.
- Increased marketability: With a growing demand for environmentally friendly properties, home builders can efficiently market the benefits of lower utility costs, rises in property value, and sustainability to most homebuyers.
- Enhanced comfort: Most energy-efficient homes offer better air quality, insulation, and non-toxic materials for maximum comfort.
Cons of building an energy-efficient home
- Higher construction costs: These homes require advanced materials to build an eco-friendly home properly. The initial costs for construction usually incur a higher premium than a standard home.
- Location dependency: The overall effectiveness of some green appliances (particularly solar panels) can vary due to location and climatic conditions.
- Complex designs: Energy-efficient homes often require a holistic approach to building, contemplating various strategies and planning processes to minimize energy consumption effectively.
- Longer construction time: Because they demand specialized materials, attention to detail, and new construction techniques, these homes may have a longer turnaround time than standard homes.
Bottom line: Considering the shift in homebuyer wants, an eco-friendly home can appeal to the right audience if you know your target customer profiles (TCPs). Even with higher initial construction costs, building an energy-efficient home will significantly benefit the environment and homeowners in the long run.
The market constantly evolves to meet buyers' demand — but we’ve got your back. At New Home Star, our cutting-edge technology and methodologies are designed to help you reach your goals and top-level success, even in an ever-evolving market. Ready to partner with our industry-leading techniques?
