NAHB Unveils New Map Tool for Endangered Species
Study Seeks 'Right' Rate of Return for Energy-Efficient Features
Meanwhile, it argues that the current mortgage rate of 4% is far too low of a benchmark against which to compare utility savings because doing so will result in some features being classified as cost-effective that are clearly priced higher than the market will bear. While NAHB surveys have shown that most home buyers do care about energy efficiency and are very interested in features of the home that can lower utility bills, home buyers on average say they need to save 14% of the upfront cost per year to make an investment in energy efficiency. This aligns with survey responses indicating that consumers are willing to pay about $7,100 up front to save $1,000 annually in utility costs. The study therefore concludes that the right rate of return to use when trying to judge the cost effectiveness of a particular energy-saving feature needs to be in the 11% and higher range if it is to accurately reflect housing market behavior -- very near to what is dictated by NAHB's policy on Cost-Effective and Affordable Energy Codes and Standards.
NAHB Mourns the Passing of Senior Life Director Dan Coleman
- Tags: ADI News
- Joanne Loftus