Why ‘Net Zero’ Homes Are Growing in Popularity

Climate concerns among those living in high risk areas or watching from a distance are driving up demand for net zero homes in a major push for sustainable living. Net zero homes produce as much energy as they consume and run on solar power, so they add no carbon to the atmosphere. 

As consumer demand rises, investors are also helping to fund a movement toward sustainable real estate, especially as more affordable solar technology is introduced to the residential construction industry. Net zero homes play a pivotal role in limiting global temperature to 1.5 degrees Celsius over preindustrial levels, but they could also provide more affordable housing with inexpensive energy bills, The New York Times reports.

Data on net zero housing is scarce, but a report from the nonprofit group Team Zero tallies about 24,500 homes in the United States that achieve “zero energy” performance and estimates that the actual number “is considerably larger.” The Department of Energy has certified 8,656 as “net zero ready,” meaning they could reach zero energy with the addition of solar.

The numbers are expected to grow, spurred not only by consumer appetite but also by building code updates, more affordable solar technology, a growing familiarity with once-exotic appliances like induction stoves and the “electrify everything” movement. Now investors are increasingly steering money toward sustainable real estate, making it easier for developers to raise money for housing that addresses climate concerns.

But even as the climate crisis has highlighted the need for sustainable construction, challenges remain. The building industry has resisted code changes. The surge in demand for single-family homes spurred by the pandemic may weaken the urgency for change because conventional houses are finding ready buyers these days.

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