The Demand for Eco-Friendly Real Estate is on the Rise

As sustainability becomes increasingly popular amongst consumers, we see a rise in the demand for eco-friendly real estate that aligns with their values of reducing carbon footprints and supporting environmentally conscious lifestyles. Buyers prioritize properties that highlight sustainable features, driving the shift in the real estate market. 

This shift is also affecting investors, builders, and sellers. New requirements and practices are being introduced to construction, rental demands are changing, and real estate professionals are changing how they market their properties. 

Continue reading to learn how this shift reshapes the real estate market and drives the demand for eco-friendly real estate. 

The real estate industry shifts to sustainable spaces

A survey by the National Association of REALTORS ®  states that more than half of the people surveyed said they see the importance of including energy-efficient info on property descriptions. Highlighting these characteristics through MLS portals and listing websites is critical to appealing to buyers and marketing buildings or properties.  

No longer just a trend, this shift to sustainable living spaces has become a common requirement as buyers continue to increase their awareness of environmental sustainability. As more buyers align their purchases with their values, they look for properties that reduce their carbon footprint, prioritize reusable energy, and use sustainable materials. 

Those who already own homes are upgrading their spaces to incorporate sustainable practices. One of the most popular ways to do this is to integrate smart home technologies that use automation and smart controls to save energy and money for the homeowner. 

Smart home technologies include: 

• Smart thermostats 
• Irrigation systems 
• Solar panels with smart management 
• LED with smart lighting systems 
• Window with smart features 
• Home energy management systems (HEMS)

Consumers are using new technologies to create eco-friendly homes and set a new standard for sustainable living. 

New building and construction practices are also becoming popular. A wave of construction with sustainability in mind has hit the market, using recycled and upcycled materials to build sturdy yet sustainable buildings. Eco-conscious materials like mass timber, highly insulated wall panel systems, and foundation slab designs can cut the carbon footprint without compromising structural integrity. As consumers prioritize eco-friendly living spaces, new building practices and techniques continue to become popular. 

The benefits of investing in eco-friendly designs

Investing in eco-friendly real estate offers many benefits, the most significant being energy and long-term cost savings for homeowners. With sustainability in mind, these homes are built to preserve energy, prioritize insulation, and incorporate renewable energy sources. These sustainable practices have reduced homeowners' utility, energy bills, and water costs. 

Though eco-friendly upgrades or properties may seem expensive, the long-term savings will be well worth it. In addition to saving on bills, the government has started offering tax incentives and rebates to homeowners who make sustainable home upgrades. 

Property values increase

As consumers shift their wish list from location to sustainable features, the demand for eco-friendly homes increases. Homes that highlight eco-friendly qualities have higher desirability and competitive advantages in the market.

Aside from homeowners, investors should pay attention to the shift in popularity of eco-friendly homes. Properties that have green certifications will likely call for premium rental rates. If you’re looking for your next investment, try sustainable upgrades to your rental properties or buy a new green-certified property. The return on investment will be worth the initial spend. 

The future of environmentally friendly real estate

The shift to environmentally friendly real estate is more than just a popular trend, it’s a reshaping of the industry. As buyers and homeowners prioritize sustainability, they increase the demand for green properties that highlight features like LED lighting, smart home systems, and environmentally friendly building materials. 

Those who invest in green-certified homes will see their property values increase and experience long-term savings on bills and may even qualify for government incentives or tax rebates. With increased awareness of our living spaces' environmental impacts, the refocusing on eco-friendly real estate is here to stay, changing how the market operates for years to come. Stay current on market trends and shifts with Constellation1. Our MLS solution allows real estate professionals to showcase listings that will catch their client's eye. With the new demand for sustainable features, ensure your MLS can keep up.