Homeowners want to have homes with features that protect them against climate events and higher insurance costs.
Climate events are national news all the time from wildfires to hurricanes and from flooding to tornadoes no part of the country is safe.
Without feeling safe, a homeowner can prescribe very little value to their home, so it’s no wonder that they are willing to pay extra for resiliency features. More than 41% of homeowners said that they would very likely pay more for resiliency features that lowered long term costs and another 30.2% of homeowners said that they were likely to pay more, adding up to nearly two-thirds of homeowners.
Our COGNITION Smart Data shows that while homeowners are still in an education process, they are being forcefully educated by the world around them as homes and communities are burned down or blown away. More and more homeowners are acknowledging that they have first hand connections to someone who has lost their home to a climate event.
These lessons are hard to learn and hard to absorb into the traditional mindset of a forever home. Buyers expect that their homes will last forever, and they also have the expectation that their home will be safe, comfortable and have low operating costs. Those lower operating costs include the managing insurance costs that are continually on the rise, a major threat to homeowners who want to keep their financial investment in the home secure.
So, how can you interpret this data? It’s time to start checking in with your homebuyers - what do they understand about climate risk? How much more will they pay to stay safe? And how can you help inform them and bring them the protection that they need for the life of the home?
Jennifer Castenson currently serves as the vice president of COGNITION Smart Data and market analytics at Green Builder Media. She also serves as contributing writer to Forbes, reporting on innovation in the built environment.
Revenue Opportunity: Homeowners Are Willing To Pay For Protection and Safety
Homeowners want to have homes with features that protect them against climate events and higher insurance costs.
Without feeling safe, a homeowner can prescribe very little value to their home, so it’s no wonder that they are willing to pay extra for resiliency features. More than 41% of homeowners said that they would very likely pay more for resiliency features that lowered long term costs and another 30.2% of homeowners said that they were likely to pay more, adding up to nearly two-thirds of homeowners.
Our COGNITION Smart Data shows that while homeowners are still in an education process, they are being forcefully educated by the world around them as homes and communities are burned down or blown away. More and more homeowners are acknowledging that they have first hand connections to someone who has lost their home to a climate event.
These lessons are hard to learn and hard to absorb into the traditional mindset of a forever home. Buyers expect that their homes will last forever, and they also have the expectation that their home will be safe, comfortable and have low operating costs. Those lower operating costs include the managing insurance costs that are continually on the rise, a major threat to homeowners who want to keep their financial investment in the home secure.
So, how can you interpret this data? It’s time to start checking in with your homebuyers - what do they understand about climate risk? How much more will they pay to stay safe? And how can you help inform them and bring them the protection that they need for the life of the home?
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By Jennifer Castenson
Jennifer Castenson currently serves as the vice president of COGNITION Smart Data and market analytics at Green Builder Media. She also serves as contributing writer to Forbes, reporting on innovation in the built environment.Also Read