Millennials Want Green Homes, But Aren’t Willing To Pay For It
While many claim they care about the environment and their impact, just a small share admit they are willing to pay extra for greener features on their homes.
A report from the National Association of Home Builders, for example, found that Millennials desire an environmentally-friendly home, but don’t necessarily want to pay for the features.
In fact, 83% of Millennials surveyed said they are concerned about the impact of building a home on the environment, yet only 16% would pay for an environmentally friendly home. That includes a willingness to pay for green features that provide energy efficiency and cost-saving benefits over time.
Another 33% said they would like an environment-friendly home, but would not pay more; 34% said they are concerned about the environment, but it’s not a consideration in a home purchase; and 18% reported they are not concerned about the environment.
When it comes to energy efficiency, more Millennials say they are willing to pay upfront if it means saving more over time.
When asked how much more they would be willing to pay in upfront costs for a home in return for $1,000 in utility bill savings each year, 26% would pay between $1,000 and $4,999; 20% would pay less than $1,000; 19% would pay between $5,000 and $9,999; 15% between $10,000 and $14,999; and 19% would pay $15,000 or more.
Also popular with Millennials is having a certification that the home meets an above code standard for water efficiency, certification that the home meets an above code standard for indoor environmental quality and a comprehensive, holistic green standard that encompasses all of the other certifications listed plus general efficient use of resources and environmentally friendly lot design.