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.