Market Statistics:

Demonstrating A Need for Home Energy Rating Experts

Industry Growth

The growing demand for products and services that make home more energy efficient is reflected in the growth of the home energy efficiency industry. Demand is being driven by the increasingly stringent nature of energy codes, and evolving attitudes among builders about the value energy efficiency. Supporting statistics:

  • The number of HERS-rated homes grew from 5 percent in 2007 to over 22 percent in 2013 – signaling a boost in demand for energy-rated homes. (RESNET and U.S. Census Bureau)
  • More stringent ENERGY STAR standards resulted in market penetration among new single-family homes to dip from 17 percent in 2008 to 13 percent in 2013 – signaling a need for help in navigating the updated, more stringent requirements. (EPA’s ENERGY STAR)
  • Demand for LEED Accredited Professional and LEED Green Associate credentials grew 46 percent in 12 months – signaling a growing need for experts in this field. (U.S. Green Building Council)
  • The number of building permits issued for new, privately owned housing units increased 62 percent from 2010 to 2014, and total permits issued rose 61 percent (from 604,600 to 976,400) between 2010 and 2013 – signaling an opening for making energy efficiency a de facto standard in new homes. (S. Census Bureau)
  • Builders are continuing to experience labor shortages after many skilled workers left the industry during the economic downturn, and have not returned. This has created delays and escalating prices for new homes. But the lack of labor, and the prevalence of inexperienced construction teams, has introduced another problem as well: builders are lacking the supervisory vigor they need to maintain quality control. To fill the gap in quality control and help mitigate risk, builders are finding a need to turn to third-party experts.

 

Consumer Demand

Americans are getting more educated and savvy about the benefits of energy efficiency, and are motivated by economic and environmental factors. They are trending toward asking for homes with features that lower their operating costs and are built to last, and that keep them warmer, safer, healthier and more comfortable. Supporting statistics:

  • Among home buyers, four of the top most desired features in a new home involve saving energy. 94 percent of home buyers want ENERGY STAR-rated appliances and 91 percent want an ENERGY STAR rating for the whole home. (National Association of Home Builders)
  • What most buyers are really concerned about when it comes to costs are utility bills. 73 percent of home buyers agree that the projected utility costs of a new home would influence their home purchase decisions. On average, buyers are willing to pay an additional $7,095 in the upfront price of the home to save $1,000 in yearly utility costs – a 14 percent rate of return on the initial investment. (National Association of Home Builders)
  • The average American householdspends over $2,200 per year on energy bills, about half of which goes to heating and cooling expenses. In 2013, 77,487 homes were built to ENERGY STAR standards – the equivalent to saving $23.2 million in annual utility bills. (EPA’s ENERGY STAR, U.S. Census Bureau)

 

Environmental Burden

The burden of construction on the environment can’t be denied. The built environment has dramatic and measurable effects on the natural environment.  Supporting statistics:

  • In the United States, buildings account for 39 percent of total energy use; 12 percent of the total water consumption; 68 percent of total electricity consumption; and 38 percent of the carbon dioxide emissions. (Environmental Protection Agency)
  • In 2013, 77,487 homes were built to ENERGY STAR standards in the U.S – the equivalent to reducing carbon dioxide emissions by 288.5 million pounds. (Environmental Protection Agency, U.S. Census Bureau)