	A Member Services Organization

Information for Builders

Survey Says...
This market trend has been evident in a number of recent consumer market surveys:

Nation's Building News - 1996 survey of home buyers conducted by the National Association of Home Builders and Fulton Research of "Top Ten Trends in Consumers' Demand in New Homes". Increased energy efficiency rated number nine.

National Family Opinion Research - 1997 survey of consumers in 39 regions who had bought a new home in the past 36 months. Survey found:

	89% of home buyers want energy efficient upgrade options
	83% are most likely to use a builder who offers these upgrades

1998 Pulte Tucson Division Survey - Found that 69.9% of buyers would spend an additional $1,200 - $1,500 for upgraded energy efficiency if it would result in annual utility savings of $300.

Appraisal Journal - 1998 study commissioned by Environmental Protection Agency reported that value of a home increases by an average of $20 for every $1 decrease in annual utility costs.

Yukon To Everglades
Nationally there is an emerging market force towards energy efficient homes. From Florida to Alaska builders are increasingly constructing energy efficient homes to capture this new dynamic market trend.

Reasons
The ability to leverage a home buyer's investment in energy efficiency increases the number of qualified home buyers and increases the purchasing power of the consumer. A recent analysis by the Environmental Protection Agency confirmed that energy efficient mortgages can have a dramatic impact on increasing the opportunities for home ownership. The analysis found that an average of 6.8% more families would be able to qualify for a mortgage through an energy efficient mortgage.

Another study published in the Appraisal Journal documented that the market value of a home increases $20 for every $1 decrease in the annual energy costs. According to a recent analysis by the Pacific Northwest National Laboratory building an a home to exceed the Model Energy Code would result in an annual savings of $170 to $425. Applying these findings to the analysis published in the Appraisal Journal would equate to an increased home market value of between $4,250 to $10,625.

A home energy rating provides a builder the benefit of an on-sight inspection by a trained and certified residential energy efficiency professional, the home energy rater. With this independent, non-regulatory inspection of the home, consumers will have greater confidence that the home they are considering to buy is energy efficient. The mortgage industry also offers preferred financing for homes that are documented to meet the EPA's ENERGY STAR Homes standards.

Market driven voluntary programs such as home energy ratings and energy mortgages have been embraced nationally by the housing industry as the most effective method for improving the energy efficiency of new housing. The January 1997 issue of Builder Magazine quoted the National Home Builders Association urging builders to adopt voluntary energy programs: "It's in a builder's interest to get involved in a voluntary energy program. If we can demonstrate strong participation by the industry, we can convince governmental regulatory agencies that market-driven programs are more effective than less flexible, mandated codes."

Links
RESNET Mortgage Lender Directory
(Lenders offering Energy Mortgages)

How Much Larger is My Market
(with the 2% stretch)

Builder Magazine
(article on Voluntary Energy Programs)

Energy Star
(Mortgage Products)

Appraisal Journal

Pulte Homes Survey