Homebuyers show growing interest in energy-efficient features and financial incentives

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Homebuyers show growing interest in energy-efficient features and financial incentives

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Kevin Sears President | Official website

Sustainable features are becoming a more significant factor for homebuyers, especially those that can reduce costs or provide financial savings. This is according to the National Association of Realtors (NAR) 2025 REALTORS Residential Sustainability Report, which surveyed residential-focused members about current sustainability trends in the industry.

The report found that 42% of agents worked with at least one property featuring green elements in the past year. Client interest in energy efficiency is also rising. The share of agents who said clients never ask about upgrades dropped from 57% last year to 29%. Now, 42% report that clients rarely ask about such features, up from just 7% in 2024. Another 21% said clients sometimes inquire, and 6% said they always or often do.

"Housing affordability continues to challenge homebuyers, so sustainability can sometimes be pushed to the back burner as buyers search for the ideal home," said Jessica Lautz, NAR deputy chief economist and vice president of research. "However, many still seek sustainable home features to reduce their environmental impact as well as heating, cooling, and commuting costs."

"Some homeowners may need to turn to remodeling upgrades to embrace sustainability, particularly as the age of America's housing stock increases due to persistent underbuilding," Lautz added.

Among specific features, windows, doors, and siding were cited by 37% of agents as most important for clients seeking green homes. Financial incentives such as tax credits or rebates were identified by 47% of agents as the main driver for demand for sustainable homes. Higher resale value was mentioned by 31%, while consumer awareness of energy savings was noted by 30%.

Agents also reported challenges in understanding how solar panels affect real estate transactions (58%) and valuing homes with solar panels (52%). Additionally, only a minority—58%—said fewer than one-fourth of their clients consider climate or environmental risk when buying a home.

The National Association of Realtors represents professionals involved in all areas of residential and commercial real estate. The organization provides resources such as free consumer guides on topics like buyer agreements and compensation negotiation at facts.realtor.

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