Does an eco-friendly home make a better investment?

49% of people aged between 25 and 40 said they would be more likely to buy or rent an eco-conscious home in a Eurocell survey.  For landlords, renting out property is a great way to build equity and make a bit of money in the meantime. But does the type of home you buy make a difference to the investment? With the clear trend towards eco-friendly housing, does eco-friendly design have any advantages over a traditional home for landlords as well as tenants?

Financial Benefits

Obviously, if you can make your dwelling more energy efficient, it will save you money on utility costs. However, whether this is an effective strategy or not largely depends on how quickly you can recoup the cost of the investment. If you only plan to own a building for a year or so, and the eco-friendly investments you’ve made do not pay for themselves within that year, through utility savings or increased profit when selling, it’s not financially worth the investment. However, for longer term investments, improving energy efficiency is sure to pay off.

Attractive Appliances

Nowadays, people often consider healthy, eco-friendly homes to be more attractive. A well-built eco-friendly home can be made just as attractive to live in as any non-efficient home.  To have a truly eco-friendly home, it needs to be built out of environmentally-conscious materials. However, there are a few things you can do to any standard home to boost its energy efficiency too. Appliances, for example, play a huge role in the efficiency of a home. When furnishing your home, make sure to choose appliances that have a higher star rating. Smaller appliances tend to be more energy efficient too, so if possible opt for smaller fridges, washers, dryers and microwaves.


Millennials are especially attracted to tech-forward, eco-friendly homes. Energy saving gadgets like smart thermostats and blinds are excellent investments that will appeal to this new generation of buyers. Whenever you can attract more buyers, you can raise the rent for the unit you want to let, making this a financial win. 

As long as you plan to hold onto your dwelling long enough for your eco-friendly investments to pay for themselves, they’re never a bad idea. Additionally, you can make many of these upgrades to any existing building, whether you’re a renter or home owner. If you have the means to make the investment, it can easily pay for itself over the lifetime of your ownership.