REALTORS® who are knowledgeable of sustainable and efficient home features give themselves a competitive market advantage. They are uniquely suited to meet client priorities by identifying, selling, and communicating the value of healthy, resilient, comfortable, and cost-effective homes that also command a high resale value.
High-performing homes prioritize comfort, health, and operational efficiency more than the average home.
There is not a specific standard or certification required to improve a home’s performance, but third-party certifications can be offered or obtained to quantify performance.
These homes provide many advantages, including:
Sustainability continues to gain traction in the real estate industry and the more engaged you are, the more business you’ll attract. Lean into learning about sustainability and become the go-to resource for clients throughout their home ownership journey.
See the Sustainability Report: Residential | Commercial
The healthier a community, the better the environment for REALTORS®. Keeping a community attractive, livable and functioning well is a complex task.
Green leases align the financial and energy incentives of building owners and tenants so they can work together to save money and conserve resources.
Green building is on the hearts and minds of many American businesses and business people.
Solar and other renewable sources are becoming more affordable options for consumers.
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.
REALTORS® & Sustainability Report (National Association of REALTORS®, Mar. 2024)
In March 2024, NAR surveyed its members about sustainability issues facing the residential real estate industry. The findings are as follows:
Script for REALTORS® on Climate Risk (Sustainability Advisory Group, 2023)
“In 2023, the Sustainability Advisory Group requested this material to be placed on the NAR’s Sustainability webpage to help NAR members answer questions from consumers, clients and potential homebuyers about the risks of climate change in their community. This “script” will help members guide consumers to the information they need to make informed decisions about their property purchase.”
A Tale of Two Towns: A Case Study on Building Communities with Sustainability and Resiliency at the Forefrontpdf (Sustainability Advisory Group, Nov. 2024)
“In 2018, the Sustainability Advisory Group (SAG) was created to “evaluate, monitor, analyze, and implement means and methods for integrating sustainability into all aspects of residential and commercial real estate… [and to] provide information and proposed resources on sustainability-related issues to the NAR Leadership Team. “As part of their work providing information on sustainability-related issues, the SAG is exploring the impact of major natural disaster events on the local housing market and REALTOR®’s livelihood. In 2024, the SAG chose to do a case study of two communities: Greensburg, Kansas and Babcock Ranch, Florida. The research focuses on the sustainable rebuilding of Greensburg, Kansas after it was leveled by a tornado and the building of Babcock Ranch, Florida from the ground up to serve as a model sustainable and resilient community in the face of Florida’s weather extremes. The research focuses on sustainable and resilient policies and building practices in residential, commercial, and town infrastructure, as well as the ways each town harnessed their most abundant renewable resources. Finally, the case study discusses opportunities, challenges, and actions for REALTORS® to be advocates for sustainable building in their communities.”
NAR Sustainability Advisory Group Market Transformation White Paperpdf
“Written by the National Association of REALTORS Sustainability Advisory Group, with input from the Appraisal Institute and the Council of Multiple Listing Services, recommends specific actions for state energy offices to consider when creating their Inflation Reduction Act rebate programs and required Market Transformation Plan. It includes a list of resources and tools already in the market that could scale with the programs. It also includes suggested strategies for partnering with REALTOR associations and other stakeholders to increase the impact of the rebate programs and solve for specific challenges agents face.”
How Climate Risks are Impacting Real Estate Insurance Costs (JLL, Jan. 23, 2025)
“In the U.S., insurance is the fastest growing line item for building owners, with knock-on effects for operating incomes and longer-term asset values. In some high-risk coastal regions such as California and Florida, insurers have exited some local markets or limited their coverage following years of escalating losses. State-sponsored programs such as California’s FAIR plan are a last resort, but the Los Angeles wildfires have raised questions over whether they can cover huge damage bills.
“Rising insurance costs are becoming a significant challenge for real estate owners, especially in markets facing direct climate hazards. Insurers traditionally accounted for a 2-3% annual increase in expenses, but premiums are rising much faster, driven by the escalating financial toll of climate events,” says Jaime del Álamo, Head of ESG Value & Risk Americas, JLL.”
Smart Buildings Keep Getting Smarter (CCIM, Fall 2024)
“Building owners/operators want to improve energy efficiency and lower operational costs, meet environmental regulations and ESG goals, enhance occupant safety/comfort, and provide digital amenities to draw tenants. All this makes a building more attractive to occupants and investors and boosts property value. "I think smart buildings are the future of office and commercial real estate in general," says Galvan. "There are so many aspects of intelligent infrastructure," says Timothy Churchwell, CCIM, Vice President of TEC Holdings, LLC. "A fire breaks out, and the elevator immediately shuts down, so safety issues exist. There are economic issues. There are energy efficiency issues." He says smart building technology is a must-have, especially in new construction. According to a recent Precedence Research report, the smart building technology market is booming and anticipated to expand at a CAGR of 10.9%, reaching $256.18 billion by 2033.”
UN Global Status Report for Buildings and Construction (United Nations Environmental Programme, Mar. 2024)
“The buildings and construction sector contributes significantly to global climate change, accounting for about 21 per cent of global greenhouse gas emissions. In 2022, buildings were responsible for 34 per cent global energy demand and 37 per cent of energy and process-related carbon dioxide (CO2) emissions. Despite a 3.5 per cent reduction in energy intensity, overall energy demand and emissions rose by about one per cent from 2021. Policy progress is evident with more comprehensive climate action plans covering buildings and construction in Nationally Determined Contributions (NDCs). However, few align with net-zero operational emissions, and while over 81 countries have building energy codes, many are outdated. Looking forward to 2024, the focus must be on tangible emission reductions, enhancing building performance, increasing renewable energy use and addressing housing and energy access disparities. Despite the complexities, strategic partnerships can facilitate the shift to an efficient, resilient and whole life net-zero carbon global building stock.”
Disaster in Paradise (Sustainability Advisory Group, Nov. 2023)
“In 2018, the Sustainability Advisory Group(SAG) was created to “evaluate, monitor, analyze, and implement means and methods for integrating sustainability into all aspects of residential and commercial real estate...[and to] provide information and proposed resources on sustainability-related issues to the NAR Leadership Team.” As part of their work providing information on sustainability-related issues, the SAG is exploring the impact of major natural disaster events on the local housing market and REALTOR®’s livelihood… in 2023 the SAG chose to study the impact of the 2018 Camp Fire on the housing of Paradise, California. The research focused on housing supply and price impacts, but the SAG chose to extend their research and pursue three central topics: 1. the ways the power grid infrastructure contributed to the fire and the role of power companies in natural disasters; 2. The preparedness of the community for a wildfire disaster; and 3. the rebuilding effort, particularly focusing on building codes, resilient building, and property maintenance.”
Links to Relevant Resources (National Association of State Energy Officials, 2023)
Energy code resources, key stakeholders, and general resources for local energy planning.
Sustainability Resource Guide (National Association of REALTORS®, 2018)
This resource tells NAR’s sustainability story and guides REALTOR® boards and members through common sustainability topics, case studies, industry partnerships, policy overview, internal programs and research.
Bringing Home Energy Information to Real Estate: A Toolkitpdf (Better Buildings Home Energy Information Accelerator, 2018)
This document helps readers interested in improving access to home energy information navigate the many resources, lessons learned, and best practices developed through the Accelerator.
GREEN Designation (National Association of REALTORS®)
By earning NAR's Green Designation, you position yourself as a leader in green real estate that's fully equipped to help clients take advantage of the opportunities their next home can offer. After completing the course, you'll have ongoing access to webinars, newsletters, and other resources that ensure you can continue to market your specialty even as the market changes.
Envisions a country where no matter where you live, or who you are, you can enjoy living in a place that is healthy, prosperous, and resilient. We empower communities through technical assistance, advocacy, and thought leadership to realize our vision of livable places, healthy people, and shared prosperity.
Appraisal Institute® Green Building Resources
Appraisal Institute offers a variety of resources centered on the valuation of sustainable properties.
This program is designed to assist state and local REALTOR® associations in their public policy advocacy of land use issues. Upon request, NAR will provide expert analysis of the legal, planning, economic, and environmental issues surrounding legislative and regulatory land use proposals.
Placemaking is a way to make your community a better place to live and work by transforming public spaces into vibrant community places. As a place becomes more desirable and welcoming, properties around that place increase in value. Funding for placemaking projects is available to state and local REALTOR® associations.
Customized State Smart Growth Legislation Program
This program provides assistance to state REALTOR® associations that wish to take the lead in writing and introducing legislation to help the state better address the challenges of growth and improve local communities.
Sustainability Toolkit for State and Local Associations (National Association of REALTORS®)
“This Sustainability Toolkit is key to establishing, implementing, and building sustainability into your association. This resource will guide you through identifying your association’s needs, building a plan to foster positive change, and specific actions and activities to help you meet your goals.
Sustainability will help your association to not only champion environmental stewardship but also promote market-based approaches to benefit your members, homeownership, and resilient development.”
Greening the MLS
Green Data Best Practicespdf (Council of Multiple Listing Services, 2024)
CMLS Best Practices bring together emerging and proven practices from across real estate to align and advance professional standards within the MLS industry.
Quick Start Guide MLS Green Fieldspdf (Council of Multiple Listing Services, 2018)
The intent of this supplement is to provide a best practice check list that makes the identification and implementation of “green fields” or home performance indicators easier, and to provide information related to RESO certification.
Home Energy Information Guidepdf (Home Energy Information Accelerator, Council of Multiple Listing Services, and National Association of REALTORS® Real Estate Standards Organization, 2017)
This guide helps real estate professionals and Multiple Listing Services make the value of efficiency investments visible to homeowners and buyers, even if the projects themselves are neatly hidden.
Green Sheet: Solar Power Fieldspdf (Council of Multiple Listing Services, 2017)
This Green Sheet, published by the CMLS Green MLS Section Council, serves as a primer to educate the real estate industry on power production fields.
CMLS Green Sheet: Automated Efficiency Models (AEMs)pdf (Council of Multiple Listing Services, 2017)
As with any new data source that may potentially impact the marketplace, shape public perception, or influence a real estate transaction, there are always many questions. CMLS Green MLS Section Council has answered some of these questions in order to provide the MLS industry with a foundation of information regarding AEMs.
Supporting Affordable Housing Preservation (Freddie Mac®)
Shared equity programs and energy efficiency alternatives.
Committing to Do More - Duty to Serve (Fannie Mae®)
Helping keep established properties available as low-cost housing alternatives.
Essential Sustainable Home Design (eBook)
Making Better Buildings (eBook)
Home Sweet Zero Energy Home (eBook)
Green Building Products (eBook)
Green Building A to Z (eBook)
The Homeowner's Energy Handbook (eBook)
Sustainable Design (eBook)
Sustainable Facilities (eBook)
The Homeowner's Energy Handbook (eBook)
On Common Ground (National Association of REALTORS®)
The Little Green Book: Green Rules to Live By for REALTORS® (Available for purchase from the REALTOR® Store)
Have an idea for a real estate topic? Send us your suggestions.
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
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