Why Buyers Are Willing to Pay More for Energy-Efficient Homes?

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Thinking of buying your next home? Here’s something savvy buyers already know: energy-efficient homes aren’t just good for the planet, they’re a smart investment. Across Australia, more home buyers are actively seeking properties with sustainable features like solar panels, insulation, and efficient heating and cooling. And they’re not just looking, they’re willing to pay more.

Energy efficiency has shifted from a nice-to-have to a non-negotiable for many buyers, thanks to rising energy costs and increased awareness of long-term savings. In this blog, we explore why energy-smart homes are commanding higher prices and what that means for you as a buyer or investor in today’s market.

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You're Not Just Buying a Home — You're Buying Lower Running Costs

At Search Property, we believe a smart investment is one that pays you back and energy-efficient homes do exactly that. Features like solar panels, passive orientation, quality insulation, and double-glazed windows aren’t just environmentally friendly, they’re powerful value-adds.

According to Domain’s Sustainability in Property 2025 report, homes with energy-efficient features are commanding significantly higher sale prices:

• Houses with energy-efficient upgrades sold for 14.5% more than standard homes, with an average price premium of $118,000.
  
• Units saw a 12% price premium, with an average increase of $75,000.

When you invest in a home with features like solar panels, passive orientation, insulation, or double-glazed windows, you're investing in future cost savings.

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This shift shows that buyers are no longer just price-sensitive, they’re value-driven. And that value comes from lower ongoing costs, better liveability, and long-term peace of mind.

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What Makes a Home Energy-Efficient?

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Energy-efficient homes can include a range of features, and the most commonly promoted in listings include:

• Solar panels and solar hot water systems
• North-facing orientation for natural heating and cooling
• Double-glazed windows
• Eco-friendly appliances and insulation
• No gas connections and induction cooktops

Listings that include these features are receiving more interest than ever. According to Domain, energy-efficient houses attract 13.8% more views, and EE (Energy Efficient) units get 6.5% more views on average.

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Energy Efficiency Isn't Just a Luxury Anymore

It used to be that energy-efficient homes were only found in high-end suburbs or brand-new developments. That’s changed.

More homes — even in regional and outer-metro areas — now feature EE upgrades. In fact, regional areas are outperforming capital cities in price premiums for energy-efficient homes:

• Regional EE houses sell for 21.3% more
• Regional EE units sell for a staggering 30.8% more than their non-efficient counterparts

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This means that whether you're buying in the city or a regional hub, energy efficiency adds real, tangible value to your purchase.

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You're Not Alone: More Australians Want Greener Homes

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Over 52% of houses and 39% of units sold in 2025 had energy-efficient features mentioned in their listings, a sharp rise compared to just five years ago. Buyers are also showing a stronger preference for homes that deliver:

• Lower energy costs
• Thermal comfort year-round
• A reduced carbon footprint

If you care about your cost of living, your climate impact, or both — this trend matters to you.

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What’s Driving This Shift?

There are a few key factors making energy efficiency more attractive to Australian buyers like yourself:

• Rising electricity costs: Making energy efficiency more of a financial priority
• Policy changes: With the rollout of the National Construction Code’s 7-star NatHERS standard, newer homes are better built from the outset
• Lifestyle focus: More Australians are valuing comfort, insulation, and sustainable living
• Long-term thinking: Savvy buyers are now weighing upfront purchase costs against long-term energy savings

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What This Means for You as a Buyer

If you're entering the property market, you’ll want to look beyond the listing price. Ask questions like:

• Does this home have solar panels?
• What’s its orientation — will it heat and cool naturally?
• Are there upgrades like insulation or double glazing?

These features don’t just improve day-to-day comfort, they help future-proof your investment. For investors, energy-efficient homes are increasingly attractive to tenants and can command higher rents, lower vacancy rates, and better long-term resale value. And for owner-occupiers, they mean lower energy bills and a more sustainable lifestyle.

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How to Find the Right Energy-Efficient Property

Finding a home that ticks all these boxes can be time-consuming — especially if you're navigating listings, agents, and inspections on your own. That's where working with a professional buyers agency like Search Property can make a huge difference.

At Search Property, you get:

• A free strategy session to map out your goals
• Access to properties with long-term value potential
• Help sourcing under-market-value or high-yield deals
• Support in assessing energy-efficient features and growth areas

You don’t just get a property — you get a plan.

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Ready to Invest Smarter?

If you're ready to take your property goals seriously — whether you're a first-time buyer or adding to your portfolio — you’ll want to be ahead of the curve.

Download a free chapter of Ravi Sharma’s new book, Retire Filthy Rich with Real Estate, at retirefilthyrich.com.au. It’s packed with practical strategies for using property to build long-term wealth.

Then, book a FREE discovery call with the expert team at Search Property. It's your smartest first step to finding a high-performing property — without all the guesswork.