Experts agree: Whether it’s a product or an entire home, sustainability sells—especially in times of economic uncertainty.
Navigating market fluctuations and economic uncertainty can be exhausting. While some consumers are making financial decisions based on lowest cost options, many more are heading in the opposite direction—making their dollars count by aligning their purchases with their values.
The study, which compared sales rankings for thousands of sustainably labeled products with those of comparable, non-labeled products, found that the labeled products had 13-14% increased demand, regardless of the type of the product, pricing strategies (changes in base price, coupons, or discounts), or advertising activities.
The verdict: Sustainability drives consumer demand at all price points and in all categories throughout the economy, and features like reduced carbon footprint, the absence of harmful ingredients, and organic production consistently stimulates buying behavior.
COGNITION’s Corroboration
COGNITION Smart Data confirms the Harvard findings, showing that:
Over 75% of consumers report that they are somewhat likely or very likely to purchase a product from a company with strong sustainability practices over one without.
Nearly 60% believe that companies with a strong sustainability focus are more likely to have long-term financial success than those without.
75% have stopped purchasing products because of concerns over a company’s sustainability practices.
Nearly 80% believe that a company’s sustainability practices impact the quality of its products or services.
COGNITION data takes the Harvard findings a step further, confirming that these buying patterns don’t just apply to consumer products, but to homes as well. 81% of Gen Zs and 74% of Millennials report that they would pay more for a sustainable home, and over half of consumers across all generations now convey that they’re more focused on long-term operating costs and total homeowner value than upfront cost or price per square foot when making home buying decisions.
Trowbridge Throwdown
Educator, author, and generational expert Katie Trowbridge has been researching consumer behavioral patterns for nearly 20 years. In a recent interview, she emphasized the transformational impact that younger generations are having on the economy and, specifically, the housing market.
“Younger generations aren’t just different—they’re driving systemic socio-economic change,” she told me. “For example, they don’t want a bigger house, they want a smarter one. One that’s healthy, affordable to run, and aligned with their values. They are less focused on the McMansion style of a ‘dream home’ as a status symbol and more concerned with functionality, health, and sustainability. The shift is stark compared to Boomers, who have historically associated success with large square footage and premium finishes.”
Trowbridge explained the psychological drivers that are motivating younger generations. “Gen Zs and Alphas were raised in a world of disruption—from climate catastrophes to pandemics, and as a result, their expectations are rooted in practicality and preparedness. They aren’t buying into fantasies. They want real climate solutions, and they’re spending money in a way that supports their values to ensure that they’ll actually have a future on this planet.”
The Education Gap
One of the most important insights from COGNITION research is that younger generations want to make sustainable choices, but they don’t always know how.
For example, 84% of Gen Zs say they want to live in a zero-energy home, but only 38% say they feel confident identifying what that means in practice. Over half of Millennial and Gen Z homebuyers say they feel overwhelmed by sustainability claims and want more transparency and third-party verification.
The process of purchasing a sustainable product is streamlined when shopping online and sustainability is an easily-checked filter. However, it becomes much more challenging when investing in a home, the largest purchase most consumers will ever make.
This means that there is a glaring whitespace for building professionals who are offering high performance, healthy, smart, resilient homes: better communication about sustainability benefits—including cost savings.
However, with consumer trust at historically low levels (younger generations have cultivated the ability to sniff out greenwashing from a mile away), it’s important to provide real data, real results, and real values.
Capturing Marketshare
Navigating the narrow pathway through the noise and market gyrations can prove to be challenging. Today’s homebuyers want functionality, performance, resiliency, and health features over square footage and fluff. More brains, less bling. They also want simple sustainability messaging with real-time data and interactive tools.
Don’t miss the opportunity to engage younger audiences early and authentically. Consider including Gen Z and Alpha voices in product development, marketing, and strategic planning.
And most of all, lead with authentic values. Younger buyers are selecting homes and brands based on purpose, ethics, and climate alignment. Demonstrate your sustainability story with clarity and conviction.
COGNITION Smart Data, Green Builder Media’s pioneering suite of market intelligence and data services, uses cutting-edge cognitive learning technology to deliver the insights you need to align products, messaging, and innovation with what homebuyers actually want.
COGNITION is the only market insights platform specifically engineered for the building industry’s sustainability transformation. We track evolving consumer behaviors, emerging technologies, policy shifts, competitive benchmarks, and market demand signals so you can adjust faster, sell smarter, and grow revenue—confidently.
As cofounder and CEO of Green Builder Media, Sara is a visionary thought leader and passionate advocate for sustainability. A former venture capitalist, she has participated in the life cycle (from funding to exit) of over 20 companies, with an emphasis on combining sustainability and profitability. She lives in Lake City, Colo., with her husband, where she is an avid long-distance runner, snowboarder, and Crossfit trainer. She is also on the Board of Directors at Dvele, runs the Rural Segment for Energize Colorado, and is a former County Commissioner.
More Green, Less Glam
Experts agree: Whether it’s a product or an entire home, sustainability sells—especially in times of economic uncertainty.
Navigating market fluctuations and economic uncertainty can be exhausting. While some consumers are making financial decisions based on lowest cost options, many more are heading in the opposite direction—making their dollars count by aligning their purchases with their values.
Harvard’s Handle
According to a recent report published Harvard University, products with sustainability labels like Amazon’s “Climate Pledge Friendly,” Target’s “Target Zero,” and Wayfair’s “Shop Sustainably” simply sell better.
The study, which compared sales rankings for thousands of sustainably labeled products with those of comparable, non-labeled products, found that the labeled products had 13-14% increased demand, regardless of the type of the product, pricing strategies (changes in base price, coupons, or discounts), or advertising activities.
The verdict: Sustainability drives consumer demand at all price points and in all categories throughout the economy, and features like reduced carbon footprint, the absence of harmful ingredients, and organic production consistently stimulates buying behavior.
COGNITION’s Corroboration
COGNITION Smart Data confirms the Harvard findings, showing that:
COGNITION data takes the Harvard findings a step further, confirming that these buying patterns don’t just apply to consumer products, but to homes as well. 81% of Gen Zs and 74% of Millennials report that they would pay more for a sustainable home, and over half of consumers across all generations now convey that they’re more focused on long-term operating costs and total homeowner value than upfront cost or price per square foot when making home buying decisions.
Trowbridge Throwdown
Educator, author, and generational expert Katie Trowbridge has been researching consumer behavioral patterns for nearly 20 years. In a recent interview, she emphasized the transformational impact that younger generations are having on the economy and, specifically, the housing market.
“Younger generations aren’t just different—they’re driving systemic socio-economic change,” she told me. “For example, they don’t want a bigger house, they want a smarter one. One that’s healthy, affordable to run, and aligned with their values. They are less focused on the McMansion style of a ‘dream home’ as a status symbol and more concerned with functionality, health, and sustainability. The shift is stark compared to Boomers, who have historically associated success with large square footage and premium finishes.”
Trowbridge explained the psychological drivers that are motivating younger generations. “Gen Zs and Alphas were raised in a world of disruption—from climate catastrophes to pandemics, and as a result, their expectations are rooted in practicality and preparedness. They aren’t buying into fantasies. They want real climate solutions, and they’re spending money in a way that supports their values to ensure that they’ll actually have a future on this planet.”
The Education Gap
One of the most important insights from COGNITION research is that younger generations want to make sustainable choices, but they don’t always know how.
For example, 84% of Gen Zs say they want to live in a zero-energy home, but only 38% say they feel confident identifying what that means in practice. Over half of Millennial and Gen Z homebuyers say they feel overwhelmed by sustainability claims and want more transparency and third-party verification.
The process of purchasing a sustainable product is streamlined when shopping online and sustainability is an easily-checked filter. However, it becomes much more challenging when investing in a home, the largest purchase most consumers will ever make.
This means that there is a glaring whitespace for building professionals who are offering high performance, healthy, smart, resilient homes: better communication about sustainability benefits—including cost savings.
However, with consumer trust at historically low levels (younger generations have cultivated the ability to sniff out greenwashing from a mile away), it’s important to provide real data, real results, and real values.
Capturing Marketshare
Navigating the narrow pathway through the noise and market gyrations can prove to be challenging. Today’s homebuyers want functionality, performance, resiliency, and health features over square footage and fluff. More brains, less bling. They also want simple sustainability messaging with real-time data and interactive tools.
Don’t miss the opportunity to engage younger audiences early and authentically. Consider including Gen Z and Alpha voices in product development, marketing, and strategic planning.
And most of all, lead with authentic values. Younger buyers are selecting homes and brands based on purpose, ethics, and climate alignment. Demonstrate your sustainability story with clarity and conviction.
Want more information about how you can augment your sustainability strategy and messaging? Subscribe to COGNITION Smart Data today!
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COGNITION is the only market insights platform specifically engineered for the building industry’s sustainability transformation. We track evolving consumer behaviors, emerging technologies, policy shifts, competitive benchmarks, and market demand signals so you can adjust faster, sell smarter, and grow revenue—confidently.
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By Sara Gutterman
As cofounder and CEO of Green Builder Media, Sara is a visionary thought leader and passionate advocate for sustainability. A former venture capitalist, she has participated in the life cycle (from funding to exit) of over 20 companies, with an emphasis on combining sustainability and profitability. She lives in Lake City, Colo., with her husband, where she is an avid long-distance runner, snowboarder, and Crossfit trainer. She is also on the Board of Directors at Dvele, runs the Rural Segment for Energize Colorado, and is a former County Commissioner.Also Read