Surprise eco features that boost home values

An unexpected section of the Aussie population is pushing for energy efficient devices in their homes, but only some features actually increase home values.

Homeowners are increasingly embracing energy efficiency – but the push isn’t coming from Gen Z eco warriors living in inner suburbs, but from older Australians who want to lower their bills.

And the growing popularity of energy efficiency features within homes will play a major part in determining the speed of value increases for individual homes, new research has revealed.

A report released Friday by PropTrack and Origin Energy revealed more than half of respondents to a national realestate.com.au survey considered energy efficiency important or extremely important.

The research found that people aged 50 and above value energy efficiency more than younger age groups and primarily wanted to reduce regular energy bills.

Australias houses will change as Australia moves towards a goal of net 0 by 2050, according to PropTrack.

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When it comes to solar panels, a relatively higher percentage (12 per cent) of respondents expressed willingness to pay at least 5 per cent more for a property with this specific feature.

However, for a fully electrified property, more than two-thirds of respondents indicated they wouldn’t pay any extra.

Furthermore, 61 per cent of respondents stated they would not be willing to pay an additional amount for a property with an electric vehicle charger.

PropTrack senior analyst of content and growth Karen Dellow said this will impact how we value properties in years to come as Australia moves towards a goal of net 0 by 2050.

Which energy efficient features consumers are most interested in. Source: PropTrack

“Energy-efficient housing has a pivotal role to play in both cutting carbon emissions and reducing the cost of energy bills for homeowners and renters,” Ms Dellow said.

Residents in Adelaide and Hobart placed the most value on energy efficiency, with 62 per cent rating it important or extremely important. This was followed by Melbourne (59 per cent), with Sydney, Perth and Brisbane at 57 per cent.

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Regional areas were even more concerned with energy efficiency than city dwellers, with as much as 80 per cent rating it as important or extremely important in regional Tasmania.

Residential buildings are responsible for about a quarter of overall electricity use and more than 10 per cent of total carbon emissions in Australia, according to PropTrack.

Electric vehicle charges at homes may increase the value of your home. Picture: Richard Dobson

The research found that people aged 50 and above value energy efficiency more than younger age groups, primarily aiming to reduce regular energy bills.

All age groups valued bill reduction, but those between 18 and 34 were particularly concerned about minimising bill shock.

The survey also revealed that renters valued energy efficiency more than buyers, which can be attributed to a concern for reducing energy bills, according to PropTrack.

“Sustainable housing can be a wise financial investment for homeowners, with the long-term savings outweighing the initial costs of incorporating energy-efficient features,” Ms Dellow said.

Main reasons for considering converting to all-electric power. Source: PropTrack.

“With the current cost of living stretching household budgets for buyers and renters, incorporating energy-efficient features and appliances into homes can lead to substantially lower utility bills over time.”

Notably, 40 per cent of respondents aged 18-34 expressed disinterest in energy efficiency. This was largely influenced by their renting status (46 per cent), limiting their ability to add energy-efficient features to their rental properties.

Solar panels was the most popular way to create energy efficient homes, 85 per cent of buyers and 67 per cent of renters expressed a keen interest in having solar panels installed.

Almost half of the participants said costs were a significant hurdle in making their homes more energy efficient, deeming it too costly to shift from gas and fully electrify their

homes.

Boosting a property’s value was a substantial incentive for homeowners to invest in energy-efficient features, with the perceived impact on property prices influencing the prevalence of installations.

Solar panels were identified by 73 per cent of respondents as a feature that adds the most value to a property.

Notably, 73 per cent of respondents identified solar power as the feature that adds the most value to a property. Window glazing was also deemed valuable by 46 per cent of participants.

Origin Energy’s executive general manager retail Jon Briskin said people are becoming more engaged in energy, which has set the stage for energy-efficient features to become more commonplace.

“More homes in the future will be electrified – with solar on the roof, a home battery to

store unused solar energy, and an EV in the garage that will also act as a battery on

Wheels,” Mr Briskin said.

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Originally published as Surprise eco features that boost home values