Home >Articles >RESTalk EP41: Freddie Mac Finds Big Benefits in HERS Rated Homes

RESTalk EP41: Freddie Mac Finds Big Benefits in HERS Rated Homes

Oct 6, 2020


To study consumer behavior is to explore human nature at its most fundamental level using the modern world as a backdrop.
-Gad Saad

What is on the mind of the housing consumer?
How important is a rated home?
What kind of consumers are attracted to buy rated homes?

Listen in as Steve Baden shares details and insights into a new housing study conducted by the Federal Home Loan Mortgage Corporation (FHLMC), a government enterprise more commonly known as Freddie Mac.

This study, Energy Efficiency: Value Added to Properties & Loan Performance”, found that HERS rated homes sold for an average of 2.7% more than comparable unrated homes. And homes with lower HERS Index Scores selling for 3-5% more than homes with higher scores. The study also found that buyers of HERS rated homes also have more desirable mortgage profiles

Steve covers the reasons and process involved in this study that merged HERS data from a random sampling of about 70,000 HERS rated homes with about 380,000 non-rated homes adding credit bureau data to gain insights into the profiles of buyers.

This study shows that the right kind of consumers are appreciating and responding to the way a HERS rating communicates the value of a home’s energy performance.

Hear more about the study from Freddie Mac staff at the session, The Value of Energy-Efficiency Rated Homes and Financing Solutions Available for Consumers, at the RESNET 2020 Building Performance Conference in Scottsdale.

Download a copy of the study here. Click here to listen.