Value added to small residential homes due to energy efficiency measures

9 pages•Published: December 11, 2023

Mahya Sam, Maryam Kouhirostami, Abdol Chini and Andriel E. Fenner

Abstract

Energy efficiency has become one of the preferred features for homebuyers. Today, energy-efficient houses are valued more on the housing market since there is a significant emphasis on environmental consciousness. Energy-efficient homes are rated as superior homes due to their role in reducing utility bills. Fannie Mae, Freddie Mac, and Federal Housing Administration (FHA) have developed policies and guidelines to help appraisers assess the energy-efficient features of a home. However, the appraisers do not generally add value of energy-efficient measures due to difficulties in estimating the benefits. The home appraisers will welcome a tool that could help them estimate the benefits of an energy efficiency measure and will use it in their appraisals. The tool developed in this study will consider the most common home energy efficiency measures (EEMs) in four categories: space conditioning, hot water, enclosures, and lighting/appliances, and estimate the initial cost of adding them to a home as well as their annual energy savings. Spreadsheets are developed for a small size home in Gainesville, Florida that allow the home appraisers find the present worth of an added energy efficient measure based on the remaining life of the home, the energy inflation rate, and the discount rate.

Keyphrases: energy efficiency measures, energy saving, home appraisal, payback period

In: Tom Leathem, Wes Collins and Anthony Perrenoud (editors). Proceedings of 59th Annual Associated Schools of Construction International Conference, vol 4, pages 195-203.

Links:	https://easychair.org/publications/paper/ZSPZ
	https://doi.org/10.29007/294x

BibTeX entry

@inproceedings{ASC2023:Value_added_small_residential,
  author    = {Mahya Sam and Maryam Kouhirostami and Abdol Chini and Andriel E. Fenner},
  title     = {Value added to small residential homes due to energy efficiency measures},
  booktitle = {Proceedings of 59th Annual Associated Schools of Construction International Conference},
  editor    = {Tom Leathem and Wes Collins and Anthony Perrenoud},
  series    = {EPiC Series in Built Environment},
  volume    = {4},
  publisher = {EasyChair},
  bibsource = {EasyChair, https://easychair.org},
  issn      = {2632-881X},
  url       = {/publications/paper/ZSPZ},
  doi       = {10.29007/294x},
  pages     = {195-203},
  year      = {2023}}

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