Homes equipped with eco-friendly features can sell at a much faster rate and higher price than similar homes on the market without sustainable amenities, Zillow reports. Homes with charging stations for electric vehicles and drought-resistant landscaping can sell over nine days faster than other homes.
As the consequences of climate change become more severe across the globe, homebuyers are taking climate emergencies and regional weather patterns into account when making home purchase decisions.
Homes equipped with features that protect against a climate-related disaster can sell for as much as 2.4% more than expected.
Energy-efficient features, such as double-pane windows and solar panels, contribute to homes selling for more and, sometimes, faster.
Homes with eco-friendly features can sell faster than expected, indicating that today’s buyers are seeking out and competing for more-sustainable homes. Homes with electric vehicle charging stations and drought-resistant landscaping can sell more than nine days faster than similar homes. Features that offer some protection from climate disasters and other natural hazards can help a home sell for more money.
A previous Zillow survey found nearly two-thirds of young adults believe climate change will impact their homes or communities in their lifetime. Those generations are now aging into their prime home-buying years, conscious of their ecological footprint and making purchase decisions based on their beliefs, values and principles.
Large shares of buyers seriously consider flooding (55%), tornadoes (41%), hurricanes (35%) and earthquakes (29%) when choosing a home. The frequency of these severe weather events and other natural hazards is putting a price premium on homes that have features designed to protect against such disasters.
Features that reduce monthly energy bills can help a home sell faster and, sometimes, for more money. Homes with listing descriptions that mention double-pane windows can sell a week faster than similar homes and for 1% more than expected. Homes with solar panels can sell for 1.4% more. Listings that tout programmable thermostats, smart sprinkler systems and smart lights can sell up to six days faster than expected.
Energy-saving features are increasingly desirable in a high-inflation world where many other expenses are rapidly rising. Zillow’s 2021 Consumer Housing Trends Report found that recent buyers are more likely to say an energy-efficient home is very or extremely important (67%), compared to 2019, when 56% of buyers felt that way. And in a recent survey, a panel of housing experts predicted energy prices would increase this year more than home prices, rents, food costs, wages and stock prices.
Zillow looked at environment-related features mentioned in listing descriptions for 3.1 million home sales in 2020 and 2021.
Environmental features that can sell homes faster or for more than expected
|Feature||Price Premium||Number of Days Faster (negative = days slower)|
|Tankless Water Heater||1.2%||2.0|
|EV Charging Station||1.0%||9.5|
|Drought resistant landscaping||N/A||6.0|
Over 3.1 million home sales from 2020 and 2021 were analyzed. In each case, the listing description on Zillow was flagged for whether it contained any variation of each of 227 common expressions of interest. The logged final sale price (or days on Zillow) was regressed against the logged pre-listing Zestimate, which represented Zillow’s best guess of how much it would sell for when listed, as well as (simultaneously) the presence or absence of every one of these 227 listing description features. Only results for features with a statistically significant coefficient and which appeared in at least 100 listing descriptions are reported here. Each coefficient represents the extra sale price premium above Zestimate (or change in speed of sale) associated with listings that mention that feature, after using the exponential formula to transform back from log form.