{"id":12237,"date":"2019-09-18T12:59:25","date_gmt":"2019-09-18T19:59:25","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=12237"},"modified":"2026-04-02T09:15:03","modified_gmt":"2026-04-02T16:15:03","slug":"roi-eco-friendly-homes","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/roi-eco-friendly-homes\/","title":{"rendered":"Will Going Green Save You Green? The ROI Eco Friendly Homes"},"content":{"rendered":"

Green living has been trending for many years, as homebuyers seek properties with a lower carbon footprint and renovate with energy-efficiency in mind.<\/p>\n

In fact, sustainable living\u2014ranging from food to travel\u2014dominated the Pinterest 100<\/a> for 2019, an annual list of hot trends.<\/p>\n

Those looking to buy a green home or add eco-friendly features to their existing home may have the environment and decreased utility bills in mind. But where do these homes and features lie on the return on investment (ROI) scale?<\/p>\n

We\u2019re taking a look at how they perform when it comes to providing real value to homeowners. Here\u2019s what you need to know about the ROI on eco-friendly homes:<\/p>\n

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Source: (Dan LeFebvre\/ Unsplash)<\/figcaption><\/figure>\n

Buying an eco-friendly home<\/h2>\n

Looking to buy an eco-friendly home and concerned that you may have to pay more? There\u2019s a perception that green homes command a premium, but this may not always be true.<\/p>\n

A recent Realtor.com analysis of the top 200 metro areas in the country shows that prices for homes with eco-features<\/a> such as solar panels, smart thermostats, and bamboo floors vary depending on the specific location.<\/p>\n

For example: in Dallas, homes with eco-features were priced 4% higher than the median home price but essentially the same price as the median-priced home in Fort Collins, CO. Meanwhile, homes with green features were actually priced 5% lower than non-green homes in California\u2019s Silicon Valley area of Sunnyvale\/San Jose\/Santa Clara.<\/p>\n

If you are considering paying a bit more now for the eco-features you want, consider that the growing popularity of eco-friendliness may continue to push your ROI on resale.<\/p>\n

Millennials comprise the largest share of homebuyers<\/a> today, according to the National Association of REALTORS\u00ae 2019 Home Buyers and Seller Generational Trends Report, and this group is increasingly enamored with living green.<\/p>\n

In fact, a survey<\/a> conducted by\u00a0The Guardian newspaper found this to be a worldwide phenomenon.<\/p>\n

\u201cMore than two-thirds of millennials \u2018buy as many eco-friendly products as they can\u2019 and in a recent survey of 66% of global respondents<\/a>\u00a0say that they\u2019re willing to pay more for products and services which come from companies that are committed to a positive social and environmental impact,\u201d they said.<\/p>\n

Renovating a home<\/h3>\n

Renovations like changing light bulbs to LEDs and adding a programmable thermostat are easy and inexpensive, and can make a difference in your energy output as well as ongoing utility costs.<\/p>\n

Here are a few other popular green renovations:<\/p>\n

Tankless water heater<\/b><\/p>\n

Water heating is responsible for 16% of the typical home\u2019s energy costs. Changing out an old, inefficient water heater for a tankless version could cost a couple thousand dollars, but will save money every month and could also boost your ROI when you decide to sell your home.<\/p>\n

New windows<\/b><\/p>\n

The same could be said about energy-efficient windows. The Department of Energy says heat gain and loss through older windows<\/a> is responsible for 25\u201330% of energy usage for heating and cooling.<\/p>\n

According to Consumer Reports, Energy Star-certified windows can lower your home\u2019s energy bills<\/a> by up to 15%.<\/p>\n

Solar panels<\/b><\/p>\n

The conversation around solar panels often begins with, \u201cHow much money can I save?\u201d and quickly turns to, \u201cHow much will it cost to get started?\u201d<\/p>\n

One of the drawbacks to installing solar panels in an existing home or including them when building a home is the upfront cost.<\/p>\n

Falling costs\u2014especially in comparison to the rising costs of domestic electricity\u2014have led to soaring demand; according to the U.S. Department of Energy, \u201cThe amount of solar power installed in the U.S. has increased more than 23 times over the past eight years.\u201d<\/p>\n