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Sell with us- 8th Apr 2025
Why luxury property buyers are balancing sustainability with convenience
While electric vehicles have long been lauded as a consummate symbol of sustainability, in practice many eco-conscious buyers are taking a more tempered approach. By and large, they are choosing hybrid models over fully electric options.
In fact, S&P Global Mobility data released in April 2024 reveals that U.S. registrations for hybrid vehicles rose by 48% in the first quarter of 2024, but by just 5.2% for EVs.
Some luxury-home buyers are taking a similar approach when investing in real estate. Hybrid homes – which include sustainable design features such as solar panels, rainfall-harvesting systems or green roofs – are becoming increasingly common. According to the 2025 Sotheby’s International Realty agent survey, eco-amenities, sustainable materials and solar panels are the top environmentally friendly extras buyers are seeking.
Ryan MacLaughlin, owner and principal broker, Island Sotheby’s International Realty in Maui, Hawaii, says, “100% of the homes we’re selling at the high end have some sort of sustainable feature.”
Saving Money While Adding Value
When asked why luxury clients invest in hybrid homes so reliably, Sotheby’s International Realty agents say the answer is two-fold: eco-friendly design features help lower utility costs over time and add value to the property. For financially savvy homeowners, being environmentally conscious is typically a win-win.
“The high-end homeowner is still the most price-conscious on the market,” says MacLaughlin. “Even though they have money to spend, they have been successful for a reason. They don’t want to waste money and sustainable features help them feel confident they can run their homes as efficiently as possible at a lower cost.”
Darlene Streit, global real estate advisor at Sotheby’s International Realty - Santa Fe Brokerage in New Mexico, finds that her buyers are often willing to pay a premium if sustainability features are already in place.
“There was a craze with people renovating their homes to be more sustainable during the pandemic and now I find that more people want that done for them,” she says. “Renovating is not as easy as it appears, nor does it cost exactly what the contractor tells them. They will pay more to have it done, rather than have to worry about doing it themselves.”
While there’s debate about exactly how much value sustainable features add to a home, an October 2024 article published by Freddie Mac, one of the largest buyers of mortgages in the U.S., found that energy-efficient homes typically sold for 3% to 5% more than less-sustainable properties.
What to Invest In
When building or converting an existing property into a hybrid home, increasing its overall value requires the careful selection of sustainability features tailored to the building’s size and the local climate. In Hawaii, for example, solar panels are hugely popular, says MacLaughlin.
According to the U.S. Energy Information Administration (EIA), in 2023 solar panels accounted for just 3.9% of the electricity generated in the U.S. However, as attitudes toward climate continue to change, that number is expected to grow rapidly. The EIA estimated in January 2024 that solar panel energy generation will grow 75% by the end of 2025, accounting for 286 billion kilowatt-hours (kWh) that year. Solar panels are typically installed with a storage system, such as a battery, which can save excess electricity for later use.
EnergySage, a solar-power marketplace funded by the U.S. Department of Energy, estimates that the average solar panel installation costs around US$33,763. Because Hawaii receives an average of 25 to 30 inches of rain each year, MacLaughlin says that water-catchment systems are also a common hybrid home feature.
Rainwater harvesting involves collecting and storing water from a home’s gutters for later use around the house. Unlike tap water, it has not been filtered or chemically treated, so it should not be consumed or used for cooking, bathing or watering edible plants unless a proper filtration and disinfecting system is also installed. However, stored rainwater is safe to use for purposes such as irrigating ornamental plants or washing cars.
In Sweden, green roofs – which feature vegetation planted over a waterproof membrane – aren’t just a popular way to be more sustainable. At their most basic level, these living roofs act as additional insulation and also help to manage stormwater runoff, particularly in cities where concrete and paved surfaces prevent it from being easily absorbed into the ground.
According to a September 2024 report in The Guardian, homes with features like green roofs typically use 80% to 90% less energy. With the optional inclusion of a rainwater-harvesting system, green roofs can contribute significantly to household water needs.
While a green roof’s insulating properties can help to naturally maintain a hybrid home’s interior temperature, a smart thermostat gives a homeowner precise control. These Wi-Fi-connected, AI-driven devices automatically switch the heating system on or off according to a set schedule and can be remotely adjusted using an app. They save energy and money by avoiding unnecessary heating or cooling.
Peace of Mind
Innovative technologies harnessing renewable resources are becoming increasingly prevalent. Yet luxury homeowners, who are often early adopters of new innovations, have been gradually embracing these advancements. Sotheby’s International Realty agents say their clients’ preferences for hybrid homes, rather than full self-sufficiency, comes down to reliability and peace of mind.
“Some homeowners don’t fully trust the technology yet,” Streit says, adding that some of her clients feel these advances are simply too new. “I think people are still a little nervous about abandoning what they’re used to,” she says. “They like having the ability to switch back and forth, say, between solar power and the grid, as needed. It gives them the best of both worlds.”
In other cases, hybrid living offers an added layer of security, given that sustainable features are often weather dependent. MacLaughlin agrees that homeowners, particularly those in the luxury market, want to know that their assets will be protected, no matter what nature throws their way.
Looking to the Future
That said, the limitations – real or perceived – of sustainable homes may eventually fade. Global real estate agents feel that sustainability will continue to have a growing impact on the real estate market, largely due to a shift in cultural attitudes.
“At the end of the day, it’s not about the money you can save or what your home can do,” says Streit. “It’s about caring for our planet and our ecosystem. People are becoming more conscious and I think the sentiment is only going to get stronger.”
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