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Understanding Green Home Trends for 2012

The uncertainty over the global marketplace, which emerged as the big economic story of 2011, will continue this year to influence most markets – including Canadian real estate.

Within this cautious milieu, we will begin to see changes in the way consumers spend their money and how they approach buying real estate. Because markets are volatile, consumers will be generally more likely to rein in their spending or find ways to acquire status that doesn’t cost money.

The consumer research firm Euromonitor International says we should look for altruism, connectivity and eco-credentials to have more prominence in people’s spending habits. Because consumers will grow even more green, value-conscious and mobile, expect those traits to penetrate the housing industry more deeply than ever.

Renovate is the fourth R when it comes to the environment – More people will turn to makeovers when it comes to changing the space in which they live. This is good news for their pocketbook and for the environment. Realtors might anticipate that buyers will do more with less as they consider purchasing smaller homes with fewer bells and whistles and renovating when the time is right.

Expect homeowners to invest in energy-efficient upgrades that reduce the draw on a home’s heating and cooling. Consumers will be more vigilant when it comes to sealing leaks, installing windows and doors, adding insulation and replacing old energy hog appliances with Energy Star models.

Footprints Shrink — When people build new homes, more will be doing so with smaller as opposed to bigger footprints. While the days of the monster home have not completely vanished, the days of being awestruck by them certainly have. Today, they’re more apt to make us cringe. Let’s face it, less square footage means less cost for building materials and labour, less waste, less use of precious natural land as well as less in terms of the ongoing cost to heat and cool the home.

Smaller spaces don’t always mean tight quarters. Perhaps we need to rethink how we design our homes. Do we really need mammoth master bedrooms that are primarily used when our eyes are shut?  According to the National Association of Home Builders (NAHB), the average size of a new home in 1978 was 1,750 square feet, a figure that had grown to 2,520 square feet by 2008. In 2010, that figure fell to 2,480 square feet, the first time since 1982. The decreasing trend is expected to continue with square footage estimated to fall to 2,152 by 2015.

 

 

Net Zero – A net zero home generates as much energy as it consumes, which is clearly a tall order, though a noble one. To achieve this, homeowners need to combine passive and active design strategies. Passive energy includes such methods as strategically placed windows that maximize or deter heat or shrubs and trees planted to help cool your home. Solar panels and wind turbines, on the other hand, produce energy.

While investing in a renewable energy system such as a geothermal well can be costly, perhaps the net result is worth it in the long run.

Energy Monitoring Systems — Keep track of your minute-by-minute energy usage. Find out what it costs to wash a load of laundry or to cook a meal. These systems let you check on how much energy you burn from the convenience of your laptop or mobile phone. The point, of course, is for you to learn how and when you use the most and to figure out ways to cut back. You save money and wear and tear on the environment, both good things.

LEDs – These lights use less energy than compact fluorescents (CFL) and have much longer life spans. At one time, LEDs were pricey, had low lighting output and emitted unattractive and cool light colours.  Prices are starting to drop with LEDs so more and more consumers will adopt this lighting especially once they learn how much more they can save on their energy bills.

Getting a handle on these emerging trends for 2012 will give you a leg up as you gain a deeper understanding of the prevailing M.O. of your clients. You’ll be viewed as a savvy and responsive realtor who’s in tune with your clients’ demands. And isn’t that what we’re all after?

 

Elden Freeman B.A., M.E.S, broker is the founder and executive director of the non-profit National Association of Green Agents and Brokers (NAGAB). Freeman says he believes that Realtors across Canada can play an important role in educating their clients on increasing energy efficiency and reducing greenhouse gas emissions. (877) 524-9494; www.nagab.org; elden@nagab.org.

 

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Toronto Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.