Millennials are willing to pay more for energy efficiency
Homebuilders often talk about the increasing desire among Millennials for energy-efficient homes. Those homebuilders are hearing it for a reason.
A recent study by the National Association of Home Builders (NAHB) found 84 percent of those generally in their 20s and 30s, otherwise known as the Millennial Generation, would willingly pay 2 to 3 percent more for an energy-efficient homes if they see a return on their energy bills, such as that that can be derived from the use of geothermal heating and cooling systems.
The report helps solidify the direction of many builders toward efficient construction, but also can be valuable information to influence builders still hedging on whether to shift their efforts from more traditional to efficient methods.
“Whether it’s improved insulation or sustainable building materials, today’s new homes can reach higher energy performance and greater durability than was possible even 20 years ago,” said Tom Woods, chairman of the NAHB and a builder from Blue Springs, Mo.
Even before the NAHB study, home-builders have been paying attention to this group of buyers who will be a major segments of their business for the next several years to come. They have been anticipating and meeting demand for energy efficiency, with almost 25 percent installing alternative energy-producing equipment, including geothermal heat pumps, in new single-family homes, according to the NAHB.