Reports Indicate ‘Green Real Estate’ To Be the Future of Housing
Historically, real estate has always been about location, value and demand. But recent trends highlighting the importance of sustainability in facing an evolving climate, energy efficiency and “green” features are showing to play an important factor in how homes are built, sold and valued. Once considered an added benefit, energy efficiency and eco-conscious design are now influencing decisions at every level as reports indicate that green real estate is next up in the future of housing trends.
According to San Francisco Examiner, Governments worldwide are tightening environmental regulations, and the real estate sector is feeling the impact. In major cities like New York and London, stringent building emissions laws are forcing developers and property owners to rethink how buildings are designed, constructed, and operated.
For example, New York City’s Local Law 97, which came into effect in 2024, sets strict carbon limits on buildings over 25,000 square feet. Non-compliance can result in hefty fines, pushing property owners to adopt greener practices. Similarly, the European Union’s Energy Performance of Buildings Directive (EPBD) aims for all new buildings to be zero-emission by 2030, with a broader goal of achieving a fully decarbonized building stock by 2050.
These regulations mean that real estate developers can no longer rely on traditional construction methods. Instead, they are increasingly prioritizing energy efficiency, renewable energy sources, and sustainable materials to meet legal requirements. Property owners are also upgrading older buildings with better insulation, energy-efficient lighting, and smart HVAC systems to avoid penalties and maintain property values.
