By Emma Peterson. 

77% of homeowners believe green homes hold more value. What does this mean for contractors?  

Recently, we had the chance to sit down with Allison Hadley, spokesperson of American Home Shield (AHS), for an episode of Contractor Outlook™ about a study conducted for AHS about homeowner interests. She opened the conversation by sharing what the survey found:  

I surveyed about a thousand homeowners nationwide, and I asked them a variety of questions having to do with environmentalism, sustainability, what they wanted out of their homes and what they were prioritizing if they were making green home improvements. And what I found is that green home improvements are popular because people are looking for ways to save as much money as possible on utilities. 

More specifically, the study found that “77% of homeowners believe green homes will hold their value better than traditional homes, particularly as climate change continues to affect how we live in this country, and 82% think that the U.S. government should encourage green home construction.” These numbers are interesting on their own but become powerful business tools when you apply them to real-world operations.  

How can contractors use Allison’s data effectively in their businesses? They can change the way they talk to homeowners. Allison explained:  

If there's one thing we can take away from this is that the key to selling energy efficiency is to stress how much it will save the consumer. Yes, it's good for the environment. Yes, it'll maybe mitigate the effects of climate change, but what will really motivate people is how it's going to drive down the utility bills... And contractors should also pay attention to that 77% who believe green homes are a better investment. When people buy homes, they want something to live in, but also something they might be able to sell someday. Communicating the value and investment potential in sustainability is huge. 

How huge? About $74,000 huge. Allison elaborated, “In the survey, 13% of respondents were planning to buy a home, so I polled those people about their buying habits and found that 44% are trying to buy a green home and 61% are willing to pay up to $73,827 more for a green home.” This willingness to invest not only shows where homeowner priorities are, it also shows where contractors should be focusing their energies to better serve their customers.  

Listen to the whole episode or Watch the recording to learn more. 

By Emma Peterson. 

In this Contractor Outlook, we dive into what today’s homeowners really want alongside Allison Hadley.  

Allison Hadley is the spokesperson of American Home Shield (AHS), a home warranty provider in the United States. Allison was commissioned by AHS to conduct independent consumer research in the home services field. More specifically, her recent study focused on the growing demand for greener homes. To learn more about this, we invited Allison on to Contractor Outlook™ to talk about her findings.  

Allison’s study found that modern homeowners are beginning to prioritize green homes, which are homes that are more energy efficient than traditional structures. Allison shared what these homes look like, saying, “68% reported they were installing at least one energy efficient appliance. In many ways, this is the most easily affordable green home upgrade. Another 54% have solar panels, which is another relatively easy installation, and 40% have green landscaping (think rewilding lawns).”   

The drive for these improvements is two-fold, with many homeowners being concerned about both rising utility prices and environmental impacts. Allison explained, “When we asked people why they were making home improvements towards energy efficiency and sustainability, 68% said that they were concerned about their environmental impact and sustainability and 80% said they were prioritizing cost savings on utilities.” 

And this trend isn’t just with existing homeowners. Potential buyers are also looking for green homes as the future, “I also surveyed those who were looking to buy homes within the next year. And they said that they would be willing to pay an average of $73,827 more for an environmentally friendly, energy efficient green home than what they would pay for a more traditional home.” 

What does all this mean for contractors and builders? Homeowners and homebuyers are shifting in their priorities and the professionals that continue to grow and succeed will shift with them. Allison summed up the findings of the study, saying, “I asked all the homeowners who own green homes, would they rather have a bigger, more traditional, less environmentally energy efficient home, or would they rather have a smaller greener home? And 63% said that they'd rather have a smaller greener home. It really goes to show you that the McMansion era is coming to an end close and a green home one is beginning.”  

Listen to the newscast or Watch the recording to learn more about the priorities of the modern homeowner.