2024’s green residential market starts strong with major industry milestones achieved and even more ambitious goals set
By Ryan Meres
In January 2024 RESNET® announced that it reached the milestone of having over four million homes HERS Index Score rated.
This milestone includes the over 360,000 homes HERS Index Score-rated in 2023, meaning over 28% of new single-family homes built in 2023 received a RESNET HERS Index Score.
In total, the four million HERS Index Score-rated homes so far have resulted in reduced carbon dioxide emissions by over 74 million tons (the equivalent of taking nearly 15 million passenger vehicles off the road for one year), improved the health and comfort of more than 16 million residents and saved homeowners over $12 billion in energy costs.
Like the miles-per-gallon calculation for cars, a HERS Index Score allows for a uniform estimate of a home’s energy consumption and provides buyers/owners with a reference point for how energy efficient it is as compared to other homes. Heating, cooling and water heating constitute the largest cost of homeownership outside of the mortgage loan, and the HERS Index Score can help homeowners outline the energy features of the home and the expected cost of utility bills.
This new four million HERS-rated homes milestone comes just three years after the last achievement of three million homes rated. What is unique about this milestone is that the four millionth home is an apartment unit in a low-rise multifamily building in Missouri. The home was rated by HERS Rating Company, Midwest Energy Consultants.
Since RESNET began tracking HERS-rated homes in its National Building Registry in 2013, low-rise multifamily dwelling units have been a fairly small percentage of all HERS Ratings. In 2013, this category made up just 12% of all HERS Ratings. Ten years later, multifamily units make up about 22% of annual ratings. RESNET anticipates even more growth in this segment as multifamily developers seek the 45L energy-efficient new home tax credits of up to $5,000 per unit.
The 1,077 sq. ft. apartment scored an impressive HERS Index score of 50… The tenants can expect to save over $400 per year on their utility expenses while the developer could be eligible for up to $5,000 in tax credits.”
The four millionth-rated home is part of the Parkside Apartments development in Gladstone, Missouri, built by Cardinal Crest Design Build. The 1,077 sq. ft. apartment scored an impressive HERS Index score of 50, while also being certified under the U.S. Environmental Protection Agency’s (EPA) ENERGY STAR and Indoor airPLUS programs, and the U.S. Department of Energy’s (DOE) Zero Energy Ready Program (ZERH). The tenants can expect to save over $400 per year on their utility expenses while the developer could be eligible for up to $5,000 in tax credits. This is a win-win situation where the developer can recoup some of the cost of building a high-performing home and the tenants can save on their monthly utility bills.
In 2020, EPA recognized RESNET as the first ENERGY STAR Home Certification Organization (HCO). In 2023, RESNET became a DOE-approved HCO, for ZERH, nationally, offering home certification through our network of thousands of certified HERS® Raters. For more information on the 45L tax credits, visit: www.resnet.us/about/45l-tax-credit-for-energy-efficient-homes-extended-and-improved.
The HERS Index Score plays an increasingly important role in the housing industry, used by builders, utilities, real estate professionals and government agencies to measure the efficiency of their homes, as rated by certified RESNET Home Energy Professionals. Consumer awareness of building performance and indoor air quality has increased significantly in recent years, and many homebuilders across the country have answered the call. In addition to the increase in consumer awareness, tax credits, environmental, social and governance (ESG) reporting, more stringent energy codes and market-driven incentives have motivated builders in recent years to improve the energy efficiency of the homes they construct.
On the heels of these four million HERS-rated homes, the RESNET Board of Directors recently adopted a goal that a million RESNET ratings will be conducted annually by the end of 2028. RESNET initiatives on ESG reporting, tax credits, code compliance, green mortgage back securities, water and carbon efficiency, the build-to-rent market and veterans’ home loans are expected to have the greatest impact on reaching this annual million goal. More information on RESNET’s mission, goals and initiatives can be found at: www.resnet.us/resources/resnet-annual-priorities.
As RESNET continues to celebrate the four million homes milestone in 2024, we tip our hats to our dedicated network of Rating Providers, HERS Raters, Rating Field Inspectors and builders who made this impressive achievement possible. For more information on the celebration, visit: www.resnet.us/about/us/4-million-hers-homes-and-counting.
Ryan Meres is programs director at RESNET.
