According to Redfin, consumer demand for more energy efficient homes is growing. Though efficiency is often viewed as secondary to improvements that are more visible, three recent developments suggest this may be starting to change:
1. Mortgages Are Beginning to Value Energy Efficiency
In the fall of 2015, FHA announced that its borrowers can qualify for a “stretch ratio” of 2 percent if the home meets a six or higher on US Department of Energy’s (DOE) Home Energy Score. DOE says “a homebuyer with an income of $75,000 who currently qualifies for a monthly mortgage payment of $1,938 per month can now borrow an extra $125 per month for a more energy efficient home. Financed with a 30-year mortgage at today’s rates, the homebuyer can now qualify for a house valued at approximately $26,500 more than a less efficient house.”
2. Ninety Percent of Homes are Under Insulated
Based on recent research by the Boston University School of Public Health, it is estimated that 90 percent of homes are under-insulated. Insulation is easy to forget about, because we don’t see it, but has a three times greater impact on the average home’s energy and comfort than windows or doors.
3. Adding Fiber Glass Attic Insulation Provides the Highest ROI
Higher than a bathroom or kitchen remodel. Yep, you read that right- adding fiber glass attic insulation averaged a 117% ROI for homeowners in 2016, not only surpassing any other remodel ROI, but adding significant value to your home.
Does your home have energy efficient updates? For more information, visit http://insulationinstitute.org/
Source- Redfin 2016