Eco-Friendly Housing: Why Sustainability is Important for Real Estate Agents
The demand for sustainable housing is reshaping the real estate industry. As climate change becomes a growing concern, more clients want homes that reflect their commitment to the environment. For real estate agents, this shift represents both an opportunity and a responsibility.
In this blog, we’ll explain the meaning of eco-friendly housing, why advocating for eco-friendly housing is crucial, and strategies real estate agents can implement to promote eco-friendly housing.
What Is Eco-Friendly Housing?
Eco-friendly housing refers to homes designed and built with the goal of minimizing environmental impact. These homes focus on reducing energy consumption, conserving water, and using sustainable or recyclable materials. Features such as solar panels, energy-efficient appliances, proper insulation, and rainwater harvesting systems are common in eco-friendly homes.
Additionally, eco-friendly housing considers the home's lifecycle—from construction to long-term maintenance—prioritizing sustainability at every stage. By adopting green building practices, these homes contribute to healthier living environments and a reduced carbon footprint, making them a key part of sustainable real estate development.
Why Is Promoting Eco-Friendly Housing and Sustainable Real Estate Important for Real Estate Agents?
There are many good reasons why real estate agents should educate themselves about sustainable real estate development and promote sustainable building practices. Let’s look at the top reasons why real estate agents and sustainability go hand in hand:
1. Environmental Concern Is on the Rise
People care about sustainability on a broad scale. The number of people who prioritize environmental concerns in general has steadily gone up over the decades.
Approximately 64% of people express significant concern about sustainability, with most indicating that their worries have grown over the past two years. Many attribute their initial concern to the impact of extreme weather events.
Moreover, Americans generally believe industries are not doing enough to minimize their environmental impact, with a majority of Americans (61%) saying that global climate change is affecting their local community either a great deal or some, which may be why a majority of buyers across all generations report considering at least one climate-related risk during their home search.
Therefore, it makes sense why 27% of Americans are willing to invest more in products that favor sustainability. It's no longer an abstract or an ideal, but a concrete problem that people demand solving for.
2. Homebuyers Want Environmentally Friendly Homes
So, we know environmental concern is on the rise, but how does that affect real estate, and what does this imply about homebuyers? Well— not-so-surprisingly— over 80% of homebuyers take climate risks into account when searching for a new home.
Sustainability used to be a niche market, something above and beyond what the ordinary consumer required. Those days are gone. A certain degree of sustainability is now a baseline demand, and this demand will only grow.
This is true across the board, but especially true for eco-friendly homes, which makes sense since a large, long-term purchase can have a profound impact on future spending.
According to the 2023 Payless Power Survey, the green features Americans want most are solar panels (83%), energy-efficient appliances (74%), and high-efficiency HVAC systems (67%), with them willing to spend an additional $50,000 over budget for an eco-home.
3. Young Homebuyers Push for Sustainability
Young homebuyers, particularly Millennials and Gen Z, are reshaping the real estate market with their focus on sustainability and climate-conscious decision-making. In fact, Millennials are leading the charge, with nearly 60% willing to pay more for sustainable housing.
For Millennials and Gen Z, green living isn’t just a preference—it’s an integral part of their lifestyle. They actively seek homes that reflect their values of environmental responsibility, from energy-efficient designs to renewable energy sources.
According to Zillow, with a median homebuyer age of 39 and first-time buyers accounting for 50% of all purchases, younger generations now comprise 54% of the homebuyer market. These groups are uniquely attuned to climate risks, often factoring them into their decisions on where to purchase homes.
Additionally, the younger generation’s support for renewable energy underscores their commitment to sustainability. While public opinion on phasing out fossil fuels remains divided, nearly half (48%) of Americans aged 18 to 29 believe the U.S. should rely exclusively on renewables, with the remainder favoring a mix of energy sources.
This progressive mindset among younger adults is driving demand for eco-friendly housing, making sustainability a key consideration for real estate agents aiming to meet their clients' needs.
4. Gen Z Renters Want Energy-Efficient Homes
Generation Z have a higher commitment to sustainability, and they're much more likely to rent than own. Earlier this year, the New York Times reported that Gen Z has become the leading force behind rental demand, overtaking millennials, who are gradually shifting toward homeownership.
These shifting demographics are prompting real estate investors to prioritize the needs of an environmentally conscious renter base. This trend is particularly critical for developers of multi-family buildings, as well as leasing agents and property managers, who play key roles in attracting and retaining these sustainability-minded tenants.
Whether features are built-in or renovated, real estate professionals need to plan for and highlight attractive features like energy-efficient features and low-VOC materials. Introducing recycling programs, energy-efficient appliances, and green spaces can also greatly impact the Gen Z renters’ choice to rent in your community.
5. Green Homes in Real Estate Sell Faster and Saves Buyers Money
For real estate agents, promoting eco-friendly housing isn’t just about catering to buyer preferences—it’s about selling properties faster and adding value for your clients. In fact, the 2022 REALTORS® and Sustainability Report found that about 60% of real estate professionals see value in highlighting energy-efficient features in their listings.
While many sustainable real estate features require a higher initial investment, even if your clients don't care about conserving resources or reducing their footprint, they'll probably enjoy the lower utility and upkeep costs in the long term.
Green homes offer undeniable financial benefits for buyers, which can be a powerful selling point for agents. Upgrades like LED lighting, efficient appliances, shorter showers, and fixing leaks save the average homeowner $320 annually on energy bills.
Many buyers also look for larger investments like solar panels, high-efficiency HVAC systems, and ENERGY STAR-rated appliances, knowing these features pay for themselves over time.
Notably, homes marketed as "eco-friendly" sell nine days faster on average and ENERGY STAR-rated homes sell an incredible 89 days faster. This is a growing trend supported by the National Association of Realtors (NAR), with 63% of realtors reporting that eco-friendly features help homes sell faster.
Additionally, as mentioned earlier, some buyers even indicate they’d spend $50,000 over budget to secure a home with eco-friendly features, confident in the long-term savings. For agents, demonstrating the financial timeline for these upgrades to pay off is a valuable strategy.
Highlighting not just the immediate savings but also the potential for higher resale value can position sustainable properties as smart investments for buyers while helping sellers achieve faster and more profitable transactions.
6. Sustainable Building Practices Promote Health and Welfare
Sustainability considers not just people's impact on the environment but also the environment's impact on people.
For example, poor indoor air quality has been a known concern since the 1970s, and its health effects are very real. It's especially a concern for any clients with asthma or other respiratory issues, but everyone can breathe easier with better air quality.
Sustainable homes are designed with features that improve indoor air quality and reduce exposure to harmful toxins. For instance, using non-toxic building materials, low-VOC (volatile organic compound) paints, and energy-efficient ventilation systems can significantly reduce indoor air pollution, creating a healthier living environment.
According to NAHB, the top products or practices to address air quality include direct outdoor ventilation of fans or exhausts, the use of low-VOC materials, better moisture control, and increased ventilation. These measures address the potential buildup of carcinogenic gases, toxic mold, allergens, and other health hazards in the home.
In addition to cleaner air, sustainable homes often incorporate natural lighting and better temperature regulation, which enhance physical comfort and mental well-being.
These features reduce stress, improve sleep quality, and foster a sense of harmony within the home. For families, this can make sustainable housing a top priority when considering their next property.
Real estate agents can leverage these benefits to appeal to health-conscious buyers, especially those with young children or preexisting health concerns.
Strategies for Real Estate Agents to Promote Eco-Friendly Housing
Now that you understand the importance of promoting eco-friendly housing, how do you promote them? Promoting eco-friendly housing requires a strategic approach to meet the growing demand for sustainable homes.
Real estate agents can play a pivotal role in driving this trend by adopting the following strategies:
1. Education and Awareness
Stay informed about sustainable building practices, certifications, and real estate trends. Educate yourself on the environmental and financial benefits of eco-friendly homes so you can confidently guide your clients. Sharing this knowledge not only builds trust but positions you as an expert in sustainable real estate.
2. Networking with Eco-Friendly Professionals
Network with professionals who specialize in sustainability, such as green architects, builders, and energy efficiency experts. These partnerships can help you access valuable resources, stay updated on innovations, and provide clients with trusted referrals for eco-friendly upgrades or builds.
3. Highlight Sustainable Features
When listing properties, emphasize green features such as energy-efficient appliances, solar panels, sustainable materials, and smart home technology. Make these features stand out in your marketing materials by detailing the cost savings, environmental benefits, and lifestyle advantages they offer.
4. Utilize Green Marketing Tools
Leverage digital marketing to promote sustainable homes. Create targeted campaigns highlighting eco-friendly benefits, and use social media platforms to reach environmentally conscious buyers. Share compelling visuals, case studies, and testimonials to capture interest and expand your reach.
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Reason #1: Sustainability is Popular
People care about sustainability on a broad scale. The number of people who prioritize environmental concerns in general has steadily gone up over the decades. The majority of Americans think that the U.S. government is not doing enough to reduce the effects of global climate change or otherwise protect the environment. Most Americans consider a company's environmental record when considering a job offer. And when asked if stricter environmental regulations are worth the cost, 63% say yes.
These trends make sense when you consider that 62% say that climate change is directly affecting their community. It's no longer an abstract or an ideal, but a concrete problem that people see needs solving.
Reason #2: Home Buyers Want Environmentally Friendly Homes
Sustainability used to be a niche market, something above and beyond what the ordinary consumer required. Those days are gone. A certain degree of sustainability is now a baseline demand.
This is true across the board, but especially true for eco-friendly homes, which makes sense for a large, long-term purchase that can have a profound impact on future spending.
The National Association of Homebuilders (NAHB) reports that most home buyers want to go green when they have the option. They found that 60% preferred to incorporate passive solar design and 66% want durable materials used in their homes.
They're willing to pay more to get these features, as well – though for the most part, only if it saves them money. According to the 2021 survey, 78% of buyers are concerned about the impact of their home on the environment, but only 15% are willing to pay extra, unless those features lead to lower utility costs. If they do, then 57% of buyers say they're willing to pay over $5,000 more up-front for a home that will save $1,000 annually on utility costs.
More than half of homebuilders reported that energy efficiency is the primary green request they get from homeowners, followed closely by products or systems to improve indoor air quality. A little less than half reported they're often asked about water conservation or renewable energy systems. Roughly a quarter say material and resource-conserving systems are a popular ask.
These are important trends to keep in mind when dealing with homeowners.
Reason #3: Young Renters, and Therefore Investors, Want Sustainable Housing
Millennials and Gen Z have a higher commitment to sustainability, and they're much more likely to rent than own. Those demographics mean that real estate investors are increasingly concerned with catering to their environmentally conscious renter pool.
This is important information for real estate developers of multi-family buildings, as well as for leasing agents and property managers.
Whether features are built-in or retrofitted, real estate professionals need to plan for and highlight attractive features like energy-efficient features and low-VOC materials. Access to sustainable community features also matter, including walkability, access to transit, community gardens, on-site recycling, bicycle-friendly amenities, and more.
Reason #4: Sustainable Real Estate Saves Money
Many sustainable real estate features require a higher initial investment. However, even if your clients don't care about conserving resources or reducing their footprint, they'll probably enjoy the lower utility and upkeep costs in the long term.
According to the 2021 NAHB Home Buyer survey, some of the most desired home features are energy-saving, including Energy-Star windows (83%), Energy-Star appliances (81%), and energy-efficient lighting (80%).
Illustrating the timeline for these features to pay for themselves is a valuable sales tool for an eco-friendly home.
Different features save different amounts of money, so make your estimates reasonable, realistic, and specific to the situation.
Reason #5: Sustainable Homes Promote Health and Welfare
We mentioned above that indoor air quality is a close second to energy efficiency in terms of popularity. This is an example of how sustainability considers not just people's impact on the environment, but also the environment's impact on people.
According to homebuilders, the top products or practices to address air quality include direct outdoor ventilation of fans or exhausts, the use of low-VOC materials, better moisture control, and increased ventilation. These measures address the potential buildup of carcinogenic gases, toxic mold, allergens, and other health hazards in the home.
Poor indoor air quality has been a known concern since the 1970s, and its health effects are very real. It's especially a concern for any clients with asthma or other respiratory issues, but everyone can breathe easier with better air quality!
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