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How Much Are Buyers Willing
to Pay for Energy Efficiency?
On average, home buyers are willing to pay upfront payment. In fact, the study shows that
an additional $8,728 upfront on a home in order home buyers who expect to pay more than
to save $1,000 a year in utility bills, according $500,000 for their homes will pay an average of
to NAHB’s recently released study, What Home $10,560 more to achieve those savings, about
Buyers Really Want (2019 Edition). The study is 60 percent more than the $6,653 those buying
based on a survey asking recent and prospective the most modest homes (less than $150,000) are
home buyers (people who bought homes in the willing to pay.
previous three years or are planning to do so in An equivalent way to present this information is
the next three years) about what they want in a in terms of the rate of return a buyer requires on
home and community. the up-front investment. If a buyer is willing to pay
It is important to note that while the average $5,000 up front to save $1,000 a year, this means
amount a home buyer is willing to pay is $8,728, the buyer requires an annual return of 20 percent.
the median is $5,000. The difference can be For more valuable data on green features and
explained by the presence of some very green- what home buyers are willing to trade off, please
motivated home buyers who are willing to pay visit BuilderBooks.com and download the latest
more than $50,000 upfront to save $1,000 a year. edition of What Home Buyers Really Want.
It may also be the case that these particular
home buyers have the means to make a bigger NAHB APR 2019
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MAY 2019 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
