Why You Should Green Your Home to Green Your Future


By Rod Helm

The U.S. housing market is cooling. Median home prices have declined more than 9% from record highs last summer.

One way to shore up a home's value -- whether someone is looking to sell in the near future or just wants to keep their property up to date -- is by making green investments in it.

Residential energy consumption is responsible for roughly 20% of U.S. greenhouse gas emissions. On average, American households consume 300 gallons of water and 30 kilowatt-hours of electricity per day. That's equivalent to filling a bathtub eight times -- and using enough power to run a dishwasher 16 times.

When Americans green their living spaces, they save money on utilities, boost their home values, and experience notable health benefits.

Homes with LEED certification use roughly 30% less energy and water than those that have merely been built to code. Energy efficiency-rated homes can command a 2.7% higher resale price than unrated homes.

In recent years, premiums for homes with green upgrades have soared. More than 60% of residential consumers are "very or somewhat interested" in sustainability, according to a survey by the National Association of Realtors.

When asked to identify their must-haves, more than 80% of respondents to a similar survey cited energy-efficient windows, appliances, and lighting as "essential" or "desirable."

Energy-efficient enhancements can make healthier, more comfortable living environments. Retrofitted insulation and ventilation systems improve indoor air quality. Sustainable LED lights allow people to avoid contact with toxic chemicals.

Imagine that you're a retiree planning to sell a charming older Midwestern home within the next few years. With modest investments in greener features -- perhaps an energy- and emissions-saving induction stove -- you could lower your utility bills and build equity. You may even be able to claim tax breaks to help pay for the updates.

Or say you're a parent of young children, confident you've found your "forever home" in a suburb. By taking advantage of low-interest green-financing options, you could make long-term investments in sustainability. New insulation, air sealing and solar panels could reduce your carbon footprint while eventually paying for themselves in the form of lower monthly bills.

Many states have agencies dedicated to assisting residents who want to reduce their energy and water usage, and local utilities are often willing to help.

The Inflation Reduction Act includes a number of tax credits and deductions that can bring down the cost of energy-efficient home upgrades. It also allocates nearly $9 billion towards rebate programs for homeowners making green retrofits.

Agents who are Realtors who are GREEN-certified and trained in the latest strategies regarding real estate sustainability and energy efficiency can help homeowners maximize these savings. They can also assist with household energy audits. When the time comes, these agents have the knowledge to market an eco-friendly home to the right buyers.

Americans can invest in their future -- and the planet's -- by making their own homes more environmentally friendly.

Rod Helm is a Minneapolis-based Realtor® and Chair of the National Association of Realtors' Sustainability Advisory Group. This piece was originally published in the Detroit News.


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