Why Energy-Efficient Homes Are Selling for $118K More Than Their Neighbours

At Leanhaus, we’ve long championed the value of energy-efficient design—not just for its environmental and health benefits, but also for the financial upside. Now, fresh data from Domain’s Sustainability in Property Report 2025 confirms what we’ve seen firsthand: sustainable homes are commanding serious premiums in the market. This correlates with our experience as all Leanhaus homes that have been on-sold have achieved record values for their location and size.

In the three months to April 2025, homes advertised with sustainability-focused keywords such as “solar”, “energy-efficient”, “eco”, “double-glazed” and “north-facing” sold for an average of 14.5% more, or $118,000 above comparable listings without those features. That’s a staggering figure—and one that highlights how buyer expectations have shifted.

Why the Premium?

The demand for energy-efficient homes is being driven by multiple factors. First, there’s the rising cost of living, particularly energy bills. As electricity prices continue to climb, buyers are placing greater value on homes that can help reduce those ongoing costs. Solar panels, thermal performance, airtight construction, and double glazing aren’t just buzzwords anymore—they’re tangible money-savers.

Chris Nunn, whose Sydney home achieved a Passive House Premium rating, exemplifies the benefits. With ultra-high performance insulation, airtightness, and a solar and battery system, his family effectively pays zero annual energy bills. And that’s not just a financial win—it’s a lifestyle upgrade. “We basically live at a comfortable temperature year-round with minimal mechanical heating and cooling,” said Nunn.

Resilience in All Market Conditions

Interestingly, the value premium for energy-efficient homes has remained resilient through market downturns. During the 2022 property peak, the price gap hit $125,000. Even as the market cooled, the premium didn’t vanish—it simply moderated. As Dr Nicola Powell of Domain noted, “Energy efficiency clearly commands a premium, and that premium over time has proved remarkably resilient.”

That’s a crucial point for prospective homebuilders and sellers: sustainable design isn’t just a trend. It’s a long-term investment that continues to pay off.

New Builds Are Leading the Way

The majority of these higher-value sustainable homes are new builds—especially in outer suburban growth areas where incorporating energy-efficient features from the outset is far more cost-effective than retrofitting existing homes. At Leanhaus, we see this as an enormous opportunity for clients looking to build now and benefit later.

With construction costs for a custom, sustainable home ranging from $4,500 to $5,500 per square metre, the upfront investment is offset not only by long-term energy savings, but also by increased resale value. For buyers and homeowners alike, that’s a powerful financial case.

The Future of Sustainable Property

Energy-efficient design and healthy homes is no longer a "nice-to-have"—it’s rapidly becoming the norm. With Australia moving toward better energy rating disclosure and consumers becoming more informed, we believe sustainable homes will increasingly define the mainstream market.

At Leanhaus, we’re proud to be ahead of the curve—designing beautiful, performance-led homes that are healthier, more comfortable, and more valuable.

Want to build a home that pays you back? Get in touch with us today.