1
Builders vs. Buyers:What’s real, what’s imagined, and what’s the way forward?
SEBC • 8/2/19
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2
Need help effectively marketing your organization? Contact Shelton Group, the nation’s leading
marketing communications agency exclusively focused in the energy and environmental arena:
http://www.sheltongrp.com/; [email protected].
Thank you!
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3 Gain a sustainable advantage
We create a market advantage for organizations that create a sustainable, energy-responsible future
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4
The company we keep
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5
We start here…
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6
...and we end with marketing strategies and plans that build brands, shift perceptions and drive sales…
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..and communications that build brands, shift perceptions and drive sales.
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Today we will look at results from Professional Builder Magazine’s survey of builders
and compare those to Shelton Group’s national Energy Pulse® data,
which explored what consumers actually think and what they’re willing to pay for.
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Let’s dig into what’s real, what’s imagined, and what your homes should feature and what your
stories should say so you can sell sustainable, beautiful homes.
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First, why does sustainability matter?
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82%
n=2,025
of Millennials are anxious about how climate change will affect their children’s
quality of life
Source: Millennial Pulse 2017© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
12
The average American recognizes that he or she needs to do something.
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of respondents think the average person should be taking concrete steps to reduce his/her environmental impact
85%
Q6 - Do you think the average person should be taking concrete steps to reduce his or her environmental impact? n=2,000
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of Americans believe that we have a moral duty to leave the earth in as good or better shape than we found it
83%And
n=2,012Source: Eco Pulse 2018© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
15
Would you like to be seen as someone who buys eco-friendly products?
2017
40%
2016
46%
37%
2015
38%
2014
33%
2013
37%
n=2,005© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
16
What major purchase best reflects our values, green or otherwise?
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So what does this all mean for consumers when they think about buying a home?
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18 Source: Energy Pulse 2018
89%of people who expect to buy a new home in the next two years say higher
energy efficiency would cause them to choose one new home over another
n=610© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
19
As part of Energy Pulse, we take a look at those who already own a “green home” as well as
those who are in the market for a new home andsay that energy efficiency would very/strongly
impact their new home purchase decision.
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20
Let’s explore these two groups
Green Homebuyers
Already purchased a certified green home
Energy Savvies• In the market for a new home
• Say that energy efficiency would very/strongly impact their new
home purchase decision
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More likely to live in the West
Green homebuyers ( ) and Energy Savvies ( ) look a lot alike…
Significantly more likely to currently live in an urban area Predominately Caucasian
(50%), but significantly more likely to be African-American vs. the overallPredominantly
Millennials and Significantly more likely to be 25-44
years old More likely to identify with the Democratic
political party
More likely to be well-educated, with a
graduate or professional degree
More likely to have kids in the Household
More likely to be male
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22
More likely to live in the West
…with one significant difference: green home buyers are more likely to have a higher HHI.
More likely to have an annual income of $100,000 or more
Significantly more likely to currently live in an urban area Predominately Caucasian
(50%), but significantly more likely to be African-American vs. the overallPredominantly
Millennials and Significantly more likely to be 25-44
years old More likely to identify with the Democratic
political party
More likely to be well-educated, with a
graduate or professional degree
More likely to have kids in the Household
More likely to be male
More likely to have an annual
household income of between
$75,000-$99,999
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Similarly, while the two groups share attitudes about the environment in many areas…
Much more likely to say the government should pay more attention to environmental issues
More likely to say “The environmental impact of our energy use” is their biggest energy concern
Significantly more likely to say energy conservation is important in the way they make decisions and purchases
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Their top reason to participate in energy conservation activities or buy energy-efficient products or services was “to save money”
…money is more of a motivator for Energy Savvies, who haven’t yet bought a green home.
Much more likely to say the government should pay more attention to environmental issues
More likely to say “The environmental impact of our energy use” is their biggest energy concern
Significantly more likely to say energy conservation is important in the way they make decisions and purchases
Their top reason to participate in energy conservation activities or buy energy-efficient products or services was “to preserve the quality of life for future generations”and significantly less likely to say it was “to save money”
VS
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Today we’ll focus on the Energy Savvies, the
future homebuyers that align most with current
owners of Green homes. These future buyers
represents the ripest target for builders selling
green homes.
nationally representative sample of
100% of Americans
20%of Americans say they are planning to buy a home in the next 2 years
Just over half (55%) of those in the
market for a new home say that energy efficiency would very/strongly impact their new home purchase decision.
45% of those in the market for a new home don’t think about energy efficiency when purchasing
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
26
What do these home buyers want in a new home?
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
27 n=223Q24 - Which of the following features do you want your new home to have?
23%
23%
23%
24%
24%
25%
26%
26%
27%
27%
27%
30%
31%
32%
32%
34%
A HEPA air puri fication system
All-LED fixtures/bulbs
Hardwood floors
A pool
A Wi-Fi enabled sound system with speakers throughout
An electric generator
Smart (connected to a mobile app) appliances
Solar panels
Water-efficient showerheads
A smart thermostat that learns my preferences and…
Granite countertops
ENERGY STAR® certi fication
Water-efficient toi lets
High-efficiency heating and air conditioning system
ENERGY STAR® certi fied appliances
Garage
1 of 2
Garages, granite countertops, sound systems and pools still make the top 15 list for features these buyers want…
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
28 n=223Q24 - Which of the following features do you want your new home to have?
23%
23%
23%
24%
24%
25%
26%
26%
27%
27%
27%
30%
31%
32%
32%
34%
A HEPA air puri fication system
All-LED fixtures/bulbs
Hardwood floors
A pool
A Wi-Fi enabled sound system with speakers throughout
An electric generator
Smart (connected to a mobile app) appliances
Solar panels
Water-efficient showerheads
A smart thermostat that learns my preferences and…
Granite countertops
ENERGY STAR® certi fication
Water-efficient toi lets
High-efficiency heating and air conditioning system
ENERGY STAR® certi fied appliances
Garage
1 of 2
… yet ENERGY STAR® appliances and certification, as well as efficient HVACs and toilets, make up the bulk of the top tier.
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
29 n=223Q24 - Which of the following features do you want your new home to have?
23%
23%
23%
24%
24%
25%
26%
26%
27%
27%
27%
30%
31%
32%
32%
34%
A HEPA air puri fication system
All-LED fixtures/bulbs
Hardwood floors
A pool
A Wi-Fi enabled sound system with speakers throughout
An electric generator
Smart (connected to a mobile app) appliances
Solar panels
Water-efficient showerheads
A smart thermostat that learns my preferences and…
Granite countertops
ENERGY STAR® certi fication
Water-efficient toi lets
High-efficiency heating and air conditioning system
ENERGY STAR® certi fied appliances
Garage
1 of 2
… and smart thermostats and appliances, along with solar panels and generators, are wanted more than Wi-Fi speakers and pools.
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
30
So what are the must-haves in a green home?
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Builders have some strong opinions.
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Higher efficiency (or SEER) HVAC, furnace, or air
conditioning equipment
Higher efficiency (ENERGY STAR®)
appliances
Higher R-value (or extra) insulation and superior air
sealing
91% 87% 84%
Q25 - What features do you consider to be must-haves in any home you call “sustainable?” (Consumer survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
Builders know that higher efficiency (or SEER) HVAC, higher efficiency appliances, and insulation with higher R-values matter a lot in a green home.
n=223n=55
33 Q25 - What features do you consider to be must-haves in any home you call “sustainable?” (Consumer survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
And the list of features Builders consider “must-haves” is extensive...91%
87% 84% 82% 82% 80%73%
64%
Higher efficiency (or SEER)HVAC, furnace, or air
conditioning equipment
Higher efficiency (ENERGYSTAR®) appliances
Higher R-value (or extra)insulation and superior air
sealing
Low-E/High efficiencywindows
Water conserving featureslike low-flow showerheads,
toilets and/or rain watercollection systems
Longer lastingcomponents - building
materials and constructiondetails that increase the
useful life of the individualcomponents and the whole
house
Lower maintenancecomponents - e.g., buildingelements such as rock or
brick that require lessmaintenance
Constructed with materialsthat produce less off-
gasses or VOC's (indoor airpollution)
n=223n=55
34 Q25 - What features do you consider to be must-haves in any home you call “sustainable?” (Consumer survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
The majority of Energy Savvies, however, don’t give these as much weight
91%87% 84% 82% 82% 80%
73%
64%
38%33%
25% 28%34% 31% 29%
23%
Higher efficiency (or SEER)HVAC, furnace, or air
conditioning equipment
Higher efficiency (ENERGYSTAR®) appliances
Higher R-value (or extra)insulation and superior air
sealing
Low-E/High efficiencywindows
Water conserving featureslike low-flow showerheads,
toilets and/or rain watercollection systems
Longer lastingcomponents - building
materials and constructiondetails that increase the
useful life of the individualcomponents and the whole
house
Lower maintenancecomponents - e.g., buildingelements such as rock or
brick that require lessmaintenance
Constructed with materialsthat produce less off-
gasses or VOC's (indoor airpollution)
#1 #2#3
n=223n=55
Energy Savvies
Builders
35 Q25 - What features do you consider to be must-haves in any home you call “sustainable?” (Consumer survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
2 of 2
51% 49% 49%42%
36% 35%
13%
28%
20%27%
23% 23% 23%30%
24%
Air exchange/Filteringsyste ms to contribute tobett er indoor air quality
Includes recycledmaterials
Includes prod ucts mad ein an e nvironmentallyfriendly w ay - i .e ., ze ro
waste, recycle dmaterials , no harmfu l
chemicals , low e nergyusag e
Naturalland scaping /Xeriscaping- A natural ap proach to
land scaping usingindig enous p lants that
need less wate r,we eding, e tc. and tree s
for natural shad ing
Re newable electricpow er ge neration
syste ms such as so lar,geo thermal o r wind
Incorporat es skylights ,Natural lighting
A "green" cer tificationissue d by an
independ ent third party,such as EN ERGY STAR® ,LEED®, Indo or AirPLUS,Wate rSense®, EP A S ero
Energy Ready, et c.
So lar screens to blo cksunlight
56%
n=223n=55
Energy Savvies
Builders
36
Why the disconnect? Energy Savvies don’t understand what truly makes a difference in this kind of construction.
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37
This confusion is also seen in their lack of confidence with terms and phrases.
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9%
19%
22%
28%
30%
Net-zero home
Sustainable home
High-performance home
Green home
Efficient home
Most Energy Savvies aren’t confident about what you mean when you use any of these terms.
Q4 - Please check any of the following terms or phrases that you know you could confidently and correctly explain to a friend. n=223© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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Regardless of what you call it, they say they’re willing to pay more for the benefits of this kind of home.
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How much more?
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Nearly half of Energy Savvies say they’ll pay 6%-10% or more
Q27 - How much more would you be willing to pay for a “sustainable home?” (Consumer survey)
4%
18%
28%
33%
14%
3%
22%
16%
25%24%
5%
7%
Nothing more 1-2% more 3-5% more 6-10% more Over 10% more Don’t know
Q12 - How much more do you think customers are willing to pay for a "sustainable" home? (Builder survey)
47%
n=223n=55
42 Q27 - How much more would you be willing to pay for a “sustainable home?” (Consumer survey)
4%
18%
28%
33%
14%
3%
22%
16%
25%24%
5%
7%
Nothing more 1-2% more 3-5% more 6-10% more Over 10% more Don’t know
Q12 - How much more do you think customers are willing to pay for a "sustainable" home? (Builder survey)
Yet builders have much less faith in consumers’ willingness to pay more, with two thirds of builders estimating 3-5% or less.
63%
n=223n=55
43
There’s also a disconnect between the specific features builders and Energy Savvies themselves believe consumers will pay for.
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Top three things Energy Savvies say they’ll pay more for
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Top three things Energy Savvies say they’ll pay more for
Top three things builders say they’ll pay more for
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46
Higher efficiency (or SEER) HVAC, furnace, or air
conditioning equipment
Higher efficiency (ENERGY STAR®)
appliances
Higher R-value (or extra) insulation and superior air
sealing
91% 87% 84%
Q25 - What features do you consider to be must-haves in any home you call “sustainable?” (Consumer survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
And remember these “Top 3” builder “must-haves”?
n=223n=55
47Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
91%87%
84%
63%
70%
54%
Higher efficiency (ENERGY STAR®)appliances
Higher efficiency (or SEER) HVAC, furnace,or air conditioning equipment
Higher R-value (or extra) insulation andsuperior air sealing
Bui
lder
Mus
t-ha
ve
Bui
lder
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Bui
lder
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Q10 - In your opinion what sustainable features do you think homebuyers would be willing to pay more for? (Builder survey)
Bui
lder
Mus
t-ha
ve
Builders recognize that consumers likely won’t pay on par with the “must” nature of these items…
n=55n=54
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
48Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
91%87%
84%
63%
70%
54%
46%
34%
24%
Higher efficiency (ENERGY STAR®)appliances
Higher efficiency (or SEER) HVAC, furnace,or air conditioning equipment
Higher R-value (or extra) insulation andsuperior air sealing
Bui
lder
Mus
t-ha
ve
Bui
lder
Mus
t-ha
ve
Bui
lder
Mus
t-ha
ve
Q26 - What sustainable features would you be willing to pay more for? (Consumer survey) Q10 - In your opinion what sustainable features do you think homebuyers would be willing to pay more for? (Builder survey)
Bui
lder
Mus
t-ha
ve
…but Energy Savvies are even less willing to pay more than builders think.
n=223n=55n=54© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
49
The disconnect in perception vs. reality makes clear the need to highlight the right things in marketing efforts.
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50
The disconnect also makes clear that it isn’t about individual features – it’s about a comprehensive package.
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51
What people want to hear about in a new home is a mix of luxury, smart and green.
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52
This is a new kind of conspicuous consumption.
Tesla Unveils Its New Line Of Camouflaged Solar Panels© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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Conspicuous consumption isn’t gone…
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…it’s just starting to look different.
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So do the right things to make homes truly sustainable …
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… and highlight what consumers can touch and feel.
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Fully commit and wrap your brand in a green blanket.
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“Consumers want to act green, but they expect businesses to lead the way.”
Source: https://ssir.org/articles/entry/cultivating_the_green_consumer© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
59
86%of Americans believe that companies
should take a stand for something beyond just making money
Q13 - Which of the following social issues do you expect companies to take a stance on? (Check all that apply.) n=1,000© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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89% of Energy Savvy prospective homebuyers
40%of Builders
Agree/Strongly Agree that more people will be interested in green homes.
Q28 (consumer) - To what extent do you agree or disagree with the following statement: “Within the next five years, more and more people will be interested in owning ‘sustainable homes’.” Q11 (builder) - To what extent do you agree or disagree with the following statement: "Among homebuyers in my market, I'm seeing more and more interest in 'sustainable' homes."
n=223n=55
61
You need both to have a believable, comprehensive story folks will pay more for1. The features that say “green”2. The branding that says you’re committed to it
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62
As you communicate, connect emotionally
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63
“We are feeling machines that think, not thinking machines that sometimes feel.”
- Alex Batchelor
Connect emotionally
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64© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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The real, underlying benefits of green homes that they actually care about
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66 Gain a sustainable advantage.
Use messaging that communicates the benefits home buyers actually care about in the right way
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67
66%believe telling someone that an energy-efficient home
helps you avoid wasting money and natural resources is an effective way to get people to spend $1,500 on
efficient home features
n=2,009Source: Energy Pulse 2018
Frame “savings” messages about money as “loss avoidance”
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68
Health + Comfort© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
69
68%believe their house has a
moderate to strong impact on their health
n=2,009Source: Energy Pulse 2018© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
70
65%are at least somewhat concerned about
indoor air quality
n=2,009Source: Energy Pulse 2018© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
71
80%think energy efficient homes are healthier
homes
n=2,009Source: Energy Pulse 2018© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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60%believe telling someone that an energy efficient home is a healthier home is an
effective way to get people to spend $1500 on efficient home features
n=2,009Source: Energy Pulse 2018© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
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Comfort is also a key driver in the EE space
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Ranked 1st“making my home more comfortable” is ranked as the number one reason consumers give for
“spending money on my home”
n=2,009Source: Energy Pulse 2018 Gain a sustainable advantage© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
75
66%believe telling someone that an energy-efficient
home allows you to set your thermostat to a more comfortable level without increasing your bill is an
effective way to get people to spend $1,500 on efficient home features
n=2,009Source: Energy Pulse 2018 Gain a sustainable advantage© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
76
64%believe telling someone that an energy-efficient home is a more comfortable home, with fewer drafts and consistent
temperatures in all rooms is an effective way to get people to spend $1,500 on efficient home features
n=2,009Source: Energy Pulse 2018 Gain a sustainable advantage© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
77
And engage people in your story
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78
Pure information campaigns
simply don’t work.
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79
To recap• Americans are worried about the environment – and they increasingly want to
be seen doing something about it
• 55% of people in the market for a new home say energy efficiency matters. A lot.
• They want some of the same features that builders believe should be in a green home – but seeing and being seen is critical, so visible features take priority
• They’ll pay a little more for those features.
• But you have to communicate the benefits of those features in an emotionally engaging way.
• And you have to position your company as standing for sustainability.
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Questions
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81
Thank you!
Suzanne [email protected]
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82
Consumer-facing Data
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6%
9%
15%
17%
17%
19%
19%
20%
22%
22%
24%
27%
28%
28%
30%
30%
48%
None of the above
Net-zero home
Whole-house health protect ion system
High-performance comfort system
Dual-f lush toilet
Sustainable home
Connected home
Low carbon footprint
Green home
High-performance home
HVAC
Indoor air quality
Autonomous driving
Artificial intelligence (AI)
Efficient home
Facia l recognit ion
Smart home
“Green home,” “sustainable home” and “high-performance home” were terms that were all low on the list of terms that consumers understand, and only 9% of consumers say they could correctly explain the term “net-zero home” to a friend
n=223Q4 - Please check any of the following terms or phrases that you know you could confidently and correctly explain to a friend.
Energy Savvies
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84
33% of consumers would be willing to pay 6-10% more for a sustainable home
n=223Q27 - How much more would you be willing to pay for a “sustainable home?”
4%
18%
28%
33%
14%
3%
Nothing more 1-2% more 3-5% more 6-10% more Over 10% more Don’t know
Energy Savvies
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85
Consumer Demographics
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86
Consumer
n=2,009
No21%
Yes79%
Homeowner
Male49%
Female51%
Gender
West22%
Midwest22%
South37%
Northeast18%
Region
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87
Age range
n=2,009
Consumer
18%
16%
18%
17%
18%
13%
65 years or more
55-64 years
45-54 years
35-44 years
25-34 years
18-24 years
7%
16%
13%
64%
Other minorities
Hispanic or Latino
Black/African-American
White/Caucasian
Ethnicity
43%
29%
18%
10%
High school graduate or less
Some college or associate degree
Bachelor's degree
Graduate/professional degree
Education
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88
Occupation
n=2,009
Consumer
8%
7%
11%
16%
6%
8%
24%
20%
Unemployed
Part- time
Home maker
Re tired
Stud ent
Professional (e.g., doctor, lawyer, etc. –advanced degree required)
White collar (e.g., office worker, technician, etc. – at least some college required)
Blue collar (e.g., manual laborer, service or retail worker, etc. – no college degree
required)
2%
3%
11%
13%
23%
29%
19%
$2 00,000 or more
$150,000–$199,999
$100,000–$149,999
$75,000–$99,999
$50,000–$74,999
$25,000–$49,999
Less than $25,000
Income
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Professional Builder Data
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90
They seem to consider almost all of these features must-haves
n=55Q8 - For the rest of this survey, we will be using the term “sustainable.” For this study, we are defining a sustainable home as one that uses energy and material more effectively both in production and operation. Please check the features you consider to be must-haves in any home you call "sustainable?"
13%
35%
36%
42%
49%
49%
51%
56%
64%
73%
80%
82%
82%
84%
87%
91%
Solar screens to block sunlight
A "green" certification issued by an independent third par ty, such as ENERGY S TAR®, LEED®, IndoorAirPLUS, WaterSense®, EPA Z ero Energy Ready, etc.
Incorporates skylights/Natural lighting
Renewable electric power generation systems such as solar, geothermal or wind
Includes prod ucts made in an environmentally friendly way - i .e., zero waste, recycled materials, noharmful chemicals , low energy usage
Natural landscaping/Xeriscaping - A natural approach to landscaping using indigenous plants that needless water , weeding, etc. and trees for natural shading
Includes recycled mater ials
Air exchange/Filtering systems to contribute to better indoor air quality
Constructed with mater ials that produce less off-gasses or VOC's (indoor air pollution)
Lower maintenance components - e.g., Building elements such as rock or brick that require lessmaintenance
Longer lasting components - Building materials and construction d etails that increase the useful life ofthe individual components and the whole house
Water conserving features like low-flow shower heads, toilets and/or rain water collection sys tems
Low-E/High efficiency windows
Higher R -value (or extra) insulation and superior air sealing
Higher efficiency (ENERGY STAR®) appliances
Higher efficiency (or SEER) HVAC, furnace, or air conditioning equipment
91
There are not many differences in what builders consider as must-haves and what they think homebuyers consider must-haves
n=55Q9 - Please check the features you think homebuyers want in a "sustainable" home? (Builder survey)Q8 - Please check the features you consider to be must-haves in any home you call "sustainable?“ (Builder survey)
18%
44%
33%
31%
33%
31%
25%
44%
42%
76%
78%
78%
64%
73%
82%
80%
13%
35%
36%
42%
49%
49%
51%
56%
64%
73%
80%
82%
82%
84%
87%
91%
So lar screens to blo ck sunlight
A "green" cer tification issue d by an indep endent third p ar ty, such as ENE RGY STAR® , LE ED®,Indoor AirP LUS , W aterSe nse®, EPA Sero Energ y Ready, etc.
Incorporat es skylights , Natural l ighting
Re newable electric po wer g eneration syst ems such as so lar , geo thermal or wind
Includes prod ucts mad e in an environmentally friendly way - i.e., zero waste , re cycled mater ials,no harmful che micals , low ene rgy usage
Natural land scap ing/ Xe riscap ing - A natural appro ach to landscaping using indigenous plants thatneed less wate r, w eeding, etc. and trees fo r natural shading
Includes recycled materials
Air exchange/Filtering syste ms to contribute to b etter indo or air quality
Constructed with materials that prod uce less off-gasses or VOC's (indoor air p ollution)
Lower maintenance components - e.g., build ing e leme nts such as ro ck or b rick that req uire lessmainte nance
Longer lasting compone nts - building mate rials and construction d etails that increase the usefullife o f the individual co mp onents and the whole house
Low-E/High efficiency window s
Wate r co nserving feature s like low-flow showe rheads , toilets and/o r rain water colle ction syst ems
Higher R -value (or e xtra) insulat ion and superior air sealing
Higher efficie ncy (ENERG Y S TAR®) app liances
Higher efficie ncy (or SE ER) HVAC, furnace, or air conditioning eq uipmen t
Q8
Q9
92
40% of builders say they are currently seeing more interest in sustainable homes among homebuyers
15%
27%
18%
29%
11%
Strongly disagree Somewhat disagree Neither agree nor disagree Somewhat agree Strongly agree
Q11 - To what extent do you agree or disagree with the following statement: "Among homebuyers in my market, I'm seeing more and more interest in 'sustainable' homes." n=55© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
93
Builders do not have very much confidence in consumer familiarity with these terms
n=73
37%
17%
26%
7%
30%
38%
35%
30%
11%
25%
21%
32%
18%
15%
11%
22%
4%
6%
7%
10%
Net-zero energyhomes
High performancehomes
Sustainable homes
Green homes
Not at all familiar Slightly famil iar Somewhat familiar Moderately familiar Extremely famil iar
Q5 - How familiar do you believe current/potential home buyers are with the following terms: (Builder survey)
n=72
n=72
n=71
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94
Builders think buyers want higher efficiency appliances and higher efficiency heating and cooling equipment
n=55Q9 - Please check the features you think homebuyers want in a "sustainable" home?
7%
18%
25%
31%
31%
33%
33%
42%
44%
44%
64%
73%
76%
78%
78%
80%
82%
Other (please specify)
Solar screens to block sunlight
Includes recycled mater ials
Natural landscaping/Xeriscaping - A natural approach to landscaping using indigenous plants that needless water , weeding, etc. and trees for natural shading
Renewable electric power generation systems such as solar, geothermal or wind
Includes prod ucts made in an environmentally friendly way - i .e., zero waste, recycled materials, noharmful chemicals , low energy usage
Incorporates skylights/Natural lighting
Constructed with mater ials that produce less off-gasses or VOC's (indoor air pollution)
Air exchange/Filtering systems to contribute to better indoor air quality
A "green" certification issued by an independent third par ty, such as ENERGY S TAR®, LEED®, IndoorAirPLUS, WaterSense®, EPA Z ero Energy Ready, etc.
Water conserving features like low-flow shower heads, toilets and/or rain water collection sys tems
Higher R -value (or extra) insulation and superior air sealing
Lower maintenance components - e.g., Building elements such as rock or brick that require lessmaintenance
Longer lasting components - Building materials and construction d etails that increase the useful life ofthe individual components and the whole house
Low-E/High efficiency windows
Higher efficiency (or SEER) HVAC, furnace, or air conditioning equipment
Higher efficiency (ENERGY STAR®) appliances
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
95
Builders believe that consumers would be willing to pay more for most of the sustainable home features
n=54Q10 - In your opinion what sustainable features do you think homebuyers would be willing to pay more for?
6%
13%
15%
15%
15%
17%
20%
24%
31%
33%
37%
52%
54%
54%
59%
63%
70%
Other (please specify)
Includes prod ucts made in an environmentally friendly way - i .e., zero waste, recycled materials, noharmful chemicals , low energy usage
Solar screens to block sunlight
Includes recycled mater ials
Natural landscaping/Xeriscaping - A natural approach to landscaping using indigenous plants that needless water , weeding, etc. and trees for natural shading
Constructed with mater ials that produce less off-gasses or VOC's (indoor air pollution)
Incorporates skylights/Natural lighting
A "green" certification issued by an independent third par ty, such as ENERGY S TAR®, LEED®, IndoorAirPLUS, WaterSense®, EPA Z ero Energy Ready, etc.
Water conserving features like low-flow shower heads, toilets and/or rain water collection sys tems
Renewable electric power generation systems such as solar, geothermal or wind
Air exchange/Filtering systems to contribute to better indoor air quality
Lower maintenance components - e.g., Building elements such as rock or brick that require lessmaintenance
Longer lasting components - Building materials and construction d etails that increase the useful life ofthe individual components and the whole house
Higher R -value (or extra) insulation and superior air sealing
Low-E/High efficiency windows
Higher efficiency (ENERGY STAR®) appliances
Higher efficiency (or SEER) HVAC, furnace, or air conditioning equipment
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
96
22% of builders believe that consumers would not be willing to pay anything more for a home that is sustainable
n=55Q12 - How much more do you think customers are willing to pay for a "sustainable" home?
22%
16%
25%
24%
5%
7%
No more 1-2% more 3-5% more 6-10% more Over 10% more Don't know
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
97
Builder Firmographics
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
98
Builder
n=96
0%
3%
3%
4%
6%
8%
16%
21%
39%
Luxury product ion
Architect/designer engaged inhome building
Manufactured, modular, log homeor systems builder
Production first -time buyer
Multifamily builder
Other (please specify)
Production move-up/move-downbuyer
Diversified builder/remodeler
Custom home builder
Primary Business
4%
4%
13%
6%
3%
5%
6%
11%
46%
More than 1,000
250-1,000
101-250
51-100
26-50
16-25
11-15
6-10
1-5
n=93
Number of homes built in 2017
© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
99
Builder
n=95
7%
8%
9%
12%
13%
15%
16%
23%
28%
East South Central (AL, KY, MS, TN)
Pacific (AK, CA, HI, OR, WA)
West North Central (IA, KS, MN, MO, NE,ND, SD)
West South Central (AR, LA, OK, TX)
New England (CT, MA, ME, NH, RI, VT)
Mountain (AZ, CO, ID, MT, NV, NM, UT,WY)
Middle At lantic (NJ, NY, PA)
South Atlant ic (DE, DC, FL, GA, MD, NC,SC, VA, WV)
East North Central (IL, IN, MI, OH, WI)
Region
0%
22%
33%
44%
78%
Alaska
Hawaii
Oregon
Washington
California
State if in Pacific region
n=9© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.
100
Builder
n=54
26%
30%
30%
13%
2%
65 orolder
55 to 64
45 to 54
35 to 44
25 to 34
Age range of participant
53%
25%
17%
6%
0%
More than30 years
21 - 30years
11 - 20years
6 - 10years
Less than5 years
Length of time company has been
in business
n=53© 2019 Shelton Communication Group, Inc. ALL RIGHTS RESERVED.