Interest in Green Home Products & Features Seen Growing

MEMPHIS, TN — Prospective homebuyers, impacted by rising energy costs and concerns over climate change, are willing to pay an average of nearly $74,000 more for a “green home,” with the majority believing that green homes will retain value more than other homes, and one in five making green improvements before IRA tax credits end in 2026.

Those are among the findings of a nationwide survey conducted among 1,000+ U.S. homeowners by American Home Shield Corp., the Memphis, TN-based home warranty provider. The poll solicited opinions regarding homeowners’ views about green homes, climate-friendly improvements, and how climate change is affecting their lives.

Among the key findings:

• 2 in 3 homeowners are worried about how climate change will affect energy costs;
• 62% believe all new homes should be green homes;
• 82% believe the government should encourage green home construction;
• Most homeowners are motivated by potential savings to “green” their home;
• 91% of green homeowners say their investment was worth the money they spent“For many homeowners, climate change is not an abstract concept, but can be felt in every utility bill,” researchers observed. “Nearly two in three now fear the impact of climate change on their bills, while more than a third say their quality of life has already been compromised in terms of higher utility bills, hotter homes and higher storm intensity.”

When asked to rank the most important aspects of a green home, respondents prioritized cost savings first, followed by environmental benefits and utility independence. Fewer, though still a significant number, saw protection from climate-related disasters as a key factor. In just the past five years, homeowners have spent an average of $8,735 on green upgrades such as energy-efficient HVAC units and appliances, green roofs and solar panels. Cost savings remain the top driver, but environmental impact, personal health, and resilience against power outages are also gaining traction, researchers said. Adding that, despite the cost difference, “value perception remains strong.”

“As climate change shifts priorities and homeowners face climbing utility bills, green homes will become an increasingly appealing option,” researchers said. “While cost and availability are the main barriers, there’s openness to government support for climate-friendly action and enthusiasm for cost incentives to go green.”