Will sustainability drive the market in 2025?
Residential
By continuing, you agree to our terms of use and privacy policy
Instructions on how to reset your password will be sent to the email below.
Want your property SOLD? There is no better opportunity this summer! Our Bid Day Out auction is geared to get you more!
Residential
Sustainability briefly drove the market, but the focus is back on the mad dash to get a piece of a shrinking real estate pie. Will sustainability influence the market at all in 2025, and if so, how? Here’s what current trends say.
For a while, sustainable changes to the real estate market appeared poised to come from all socioeconomic levels. Consumers continue to indicate a passion for sustainability, but money interests often supersede. Nowhere does this reality become more stark than in the real estate market.
There are only so many hours in the day for even the most industrious workers, and salaries alone are no longer enough for millions to sustain their everyday lives. Sustainable change must come from the top, with national and international standards becoming the new drivers.
Marrying sustainability to financial performance requires delicate negotiations among the upper echelons of business and government. The environmental threats haven’t vanished - the existing grid still faces threats, and stronger, more severe weather events have increased the need for housing resiliency. Balancing fiscal reality and preventing collapse while moving towards the reforms needed to protect the planet is an ongoing dance among society’s movers and shakers, not all of whom agree on the need to take swift action.
That said, progress sometimes occurs unseen. The emphasis on holistic approaches to sustainability has driven improvements in building designs and renovations. For example, replacing worn garage doors with models with improved R-values protects a home’s interior from shifting temperature extremes, lowering heating use. Smart home innovations automate thermostats and lights and allow adjustment from anywhere, also saving energy.
What do listing agents say about sustainability as a market driver in 2024? Affordability remains the principal concern, although experts disagree that prices will continue to rise. In a recent interview, Chief Economist Mike Jones predicted housing prices are likely to remain stable through the end of 2024 and rise by 7% over 2025, as falls in mortgage rates should boost market activity.
Darren Harris and the team at Home4View also predict a moderate price increase in 2025. However, they caution that this projection hinges on continued efforts to improve supply. While no one can see into the future, it doesn’t appear buyers entering the market for the first time will have any easier go of it.
However, there’s room for opportunity. While experts anticipate the apartment market will be the hardest hit by rising prices, here’s where sustainability can make a huge difference as a selling point. Such living conditions already have the underlying structure in place, such as an association, to manage community solar projects that could increase grid resiliency while keeping residents more secure.
Adding such features can make a significant difference. Such projects consist of a community solar farm or even incentives for homeowners to add panels to their rooftops. Although connected to the wider grid, residents receive steep discounts for the power their location generates. Furthermore, such systems can operate independently in the case of wider shutdowns - and telling residents their lights are sure to stay on is a huge selling point.
Although the push for sustainability in the real estate market has taken a backseat to affordability, innovations continue to make things greener behind the scenes. Here’s a look at the key features of properties ranked among the region’s most eco-friendly.
Imagine a recycled roof made from old soup cans or a glass countertop created out of wine bottles. Repurposing materials can require even less energy than recycling. For example, reusing an intact mantelpiece from an ageing home means the piece doesn’t need to be reprocessed at all.
Solar energy is ideal for grid diversification and providing an ongoing alternative energy source. However, it isn’t always the best choice for every area. Geothermal energy already powers 18% of New Zealand’s needs, and expanding its use with solar can lead to utility savings for homebuyers.
The Hundertwasser Art Centre and Wairau Maori Art Gallery shows how architecture can integrate with nature, and builders can emulate its design in neighborhoods, too. For example, entire condominium communities can adopt a green roof and integrated community garden and kitchen, perfect for socialising with neighbours.
A crucial urban planning dilemma is fitting homes into small spaces while leaving room for gardens and pedestrians. Models are now available from multiple builders, and it will be interesting to see how they integrate into existing neighbourhoods or create independent communities.
While sustainability may no longer be the principal real estate market driver, it still matters. The threat climate change poses hasn’t disappeared simply because humans decided that money issues sometimes take precedence. In adversity often comes opportunity. As the unpredictable market stabilises, builders and real estate agents can reignite the drive for sustainability, using such features as selling points to welcome discerning buyers home.
About the Author: Evelyn Long is the Editor-in-Chief of Renovated Magazine and a writer passionate about sharing real estate tips with aspiring homeowners around the world. She regularly contributes to sites like the National Association of Realtors and Allioo.
From the top of the North through to the deep South, our salespeople are renowned for providing exceptional service because our clients deserve nothing less.
Managing thousands of rental properties throughout provincial New Zealand, our award-winning team saves you time and money, so you can make the most of yours.
With a team of over 850 strong in more than 88 locations throughout provincial New Zealand, a friendly Property Brokers branch is likely to never be too far from where you are.
