Energy efficiency can drive property value

This Blog explains how Energy efficiency will drive real estate value in the future.

Hive Group has the right tools and expertise to help you make the right choice on your next home purchase or to market your current property as a more sustainable and efficient option.

Ken Levenson, executive director of The Passive House Network, a nonprofit that helps build high-performance buildings nationwide, spoke at NAR NXT, The REALTOR® Experience, in Anaheim, Calif. Last November. He discussed how energy efficiency will become a key factor in real estate valuation in the near future.

"Energy efficiency that’s integrated and predictable will drive value of the property," Levenson said at a session called "A Shifting Proposition: Energy Efficiency Driving Property Value." He warned that properties that don’t perform well in energy efficiency will need to be renovated or eventually get left behind.

Levenson explained how energy efficiency can benefit homeowners in terms of health, comfort, resilience, cost-effectiveness and sustainability. He also shared some examples of energy efficient homes that used significantly less energy than average homes in their areas.

"Efficiency underlies what we value most," he said. He added that energy efficiency can also reduce maintenance costs, protect homeowners from utility rate fluctuations and enable them to shelter in place, even in the event of power loss.

Levenson outlined the main components of improved efficiency in buildings: greater insulation, airtightness, solar protection, and hygienic ventilation. He said that smart controls and renewables can be added to enhance energy performance, but they should not be used to compensate for poor performance.

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