REALTORS and

Sustainability
2017 Report

National Association of REALTORS Research Department

 NAR Sustainability Program
In order to position NAR as a leader in real estate sustainability topics with real estate
agents, brokers, allied trade associations, and consumers, the REALTOR Sustainability
program efforts focus on coordination and articulation of new and existing association
benefits and resources. Identifying the growth of sustainability in real estate, this
program conducts outreach to members, appropriate trade associations and agencies
to raise awareness and engagement in NAR sustainability efforts. Additionally, it
identifies resources that would benefit all members. Finally, this program introduces
corporate social responsibility and triple bottom line concepts into NARs decision-
making practices, allowing NAR to educate and support sustainability in real estate
through environmental, social, and economic contexts.

Vision Statement: REALTORS thrive in a culture of sustainability that

promotes viability, resiliency, adaptability, and resource efficiency.
Member Mission: Provide leadership and strategies on topics of sustainability
that benefit members, REALTOR associations and communities.

NAR is positioned to respond to sustainability questions and informational needs of

members, brokers, government agencies, and consumers. Strengthens NARs influence
on legislative and regulatory issues related to sustainability. Resources designed to
identify, articulate, and grow sustainability opportunities are easily accessible
throughout all levels of the organization and address the most basic to the highly
complex business needs.

To find out more, visit https://www.nar.realtor/topics/Sustainability.

2017 Sustainability Report

 Executive Summary
In a move driven by the wishes of its members, the National Association of REALTORS
(NAR) initiated the Sustainability Program as a platform for dialogue about sustainability
in real estate for agents, brokers, allied trade associations, and consumers. The programs
efforts focus on coordination and articulation of NARs existing sustainability resources,
while also supporting a growing area of interest for consumers, helping members to
assist home buyers and sellers.

In February 2017, NAR surveyed its members pertaining to sustainability issues facing
their industry. This report summaries those findings.

Highlights:

Forty-three percent of respondents report their MLS has green data fields.
Seventy-one percent said that energy efficiency promotion in listings was very or
somewhat valuable.
Fifty-six percent of respondents find clients are at least somewhat interested in
sustainability.
Twenty-four percent said that tiny homes were available in their market.
Sixty-one percent of respondents are comfortable answering clients questions
about home performance.
Sixteen percent said that wind farms are available in their market. Fourteen percent
said wind farms increased the perceived property value.
Eighty percent said that solar panels are available in their market. Forty-two percent
said solar panels increased the perceived property value.
Eight percent of respondents frequently have clients who request to see properties
close to public transportation.
Twenty-seven percent of agents and brokers were involved with 1 to 5 properties
that had green features in the last 12 months.
Thirteen percent of brokerage firms have experience working with commercial
building repurposing and 17 percent with residential repurposing.
Eighty-six percent have taken steps to reduce waste and energy usage.
Ten percent of firms set goals to reduce energy usage by a specified date.
Eleven percent of brokers use an environmentally efficient car.

2017 Sustainability Report

 Multiple Listing Service
Forty-three percent of respondents report their MLS has green data fields,
compared to 19 percent that do not have green data fields.

MLS Green Data Fields

45%

40%

35%

30%

25%
43%
20% 38%

15%

19%
10%

5%

0%
MLS has green data MLS does not have Don't know
fields green data fields

2017 Sustainability Report

 Value of Energy Efficiency
Promotion in Listings
A majority of agents and brokers (71 percent) said that energy efficiency
promotion in listings was very or somewhat valuable.

Value of Energy Efficiency Promotion

45%

40%

35%

30%

25% 44%

20%

15%
27%

10% 20%

5%
1%
4% 3%
0%
Very Somewhat Neutral Not very Not at all Depends on
valuable valuable valuable valuable the listing

2017 Sustainability Report

 Solar Panels
A majority of agents and brokers (80 percent) said that solar panels are available in
their market. Forty-two percent said solar panels increased the perceived property
value, compared to 31percent that said they had no effect.

Solar Panels in Market

80%
70%
60%
50%
80%
40%
30%
20%
10% 13% 7%
0%
Solar panels located No solar panels in Don't know
market market

Solar Panels Perceived Effect on Property Value

45%
40%
35%
30%
25%
42% 31%
20%
15%
10% 19%
5% 9%
0%
Increase value Decrease value No effect Don't know
2017 Sustainability Report
 Solar Panels
Forty-eight percent of agents and brokers are unclear if the time on market is
longer or shorter for properties with solar panels. Thirty-two percent believe the
time on market is the same.

Perceived Time on Market with Solar Panels

50%

45%

40%

35%

30%

25% 48%

20%
32%
15%

10%
11%
5% 2%
4% 5%
0%
Much more A little Neither A little less Much less Unclear
time more time more or time time
less time

2017 Sustainability Report

 Wind Farms
Sixteen percent of respondents said that wind farms are available in their market.
Fourteen percent said wind farms increased the perceived property value,
compared to 38 percent that said they had no effect.

Wind Farms in Market

80%
70%
60%
50%
40% 71%
30%
20%
10% 16% 13%
0%
Wind farms in market No wind farms in Don't know
market
Wind Farms Perceived Effect on Property Value

40%
35%
30%
25% 38%
20%
15% 27%
22%
10% 14%
5%
0%
Increase value Decrease value No effect Don't know
2017 Sustainability Report
 Tiny Homes
Twenty-four percent of brokers said that tiny homes were available in their
market, compared to 61 percent that reported tiny homes were not yet available.
Tiny homes were defined in the survey as homes that are 600 square feet or less.

Tiny Homes (600 sq. ft. or less) in Market

70%

60%

50%

40%
61%

30%

20%

24%
10% 14%

0%
Tiny homes located Tiny homes are not Don't know
market located in market

2017 Sustainability Report

 Green Properties
Twenty-seven percent of agents and brokers were involved with 1 to 5 properties
that had green features in the last 12 months. Seventy percent of members worked
with no properties that had green features.

Number of Properties with Green Features

Respondents Were Involved With in Past 12 Months
(Buyer or Seller Side)

70%
0

27%
1 to 5

2%
6 to 10

1%
11+

0% 10% 20% 30% 40% 50% 60% 70%

2017 Sustainability Report

 Home Features
The home features that clients listed as very important to their agent or broker
include a comfortable living space (71 percent), proximity to frequently visited
places (40 percent), windows, doors, and siding (39 percent), and a homes utility
bills and operating costs (28 percent).

Importance of Home Features to Clients

Comfortable living space 71% 24% 4%

2%
Proximity to frequently visited places (e.g. grocery 40% 47% 10%
store, school, highway, etc) 1%
Windows/Doors/Siding (e.g. age, quality) 39% 49% 10% 2%
5%
A home's utility bills/operation costs 28% 51% 15% 1%

Commuting costs 18% 40% 22% 14% 6%

A homes efficient use of lighting (e.g. natural light, 12% 38% 32% 14% 4%
Energy Star fixtures, LED bulbs, smart hubs)

Smart/connected home 8% 32% 38% 16% 5%

Green community features (e.g. bike lanes, green 8% 29% 34% 20% 8%
spaces, placemaking, etc)

Landscaping for water conservation 8% 24% 36% 22% 9%

Renewable energy systems (e.g. solar, geothermal, 3% 20% 42% 24% 10%
etc)

0% 50% 100%

Very important Somewhat important Neutral Not very important Not at all important

2017 Sustainability Report

 Neighborhood Features
The neighborhood features that clients look for include a access to schools
(79 percent), access to shopping (72 percent), parks and outdoor recreation
(60 percent), and affordable housing (38 percent).

Neighborhood Features Clients Look For

80%

70%

60%

50%

79%
40% 72%

30% 60%

20% 38% 37% 35%

10%
9% 7% 6%
0%

2017 Sustainability Report

 Transportation and
Commuting Features
The transportation and commuting features that clients listed as very or
somewhat important include easy access to highways (82 percent), commute times
and distance (81 percent), and walkability (51 percent).

Importance of Transportation and Commuting

Features to Clients

39% 42% 12% 5% 3%

Commute times/distance

34% 48% 13% 3% 2%

Easy access to highways

15% 36% 26% 16% 8%

Walkability

9% 22% 28% 25% 15%

Public transportation

7% 32% 33% 17% 9%

Bike lanes/paths

0% 20% 40% 60% 80% 100%

Very important Somewhat important Neutral Not very important Not at all important
2017 Sustainability Report
 Public Transportation
Eight percent of respondents frequently have clients who request to see
properties close to public transportation, 21 percent report sometimes they have
clients who make the request, and 27 percent rarely have clients who make the
request.

Clients Request to See Properties Close to Public

Transportation

45%

40%

35%

30%

25%

42%
20%

15% 27%
21%

10%

5% 3%
8%

0%
Frequently Sometimes Rarely Never Don't know

2017 Sustainability Report

 Building Repurposing
Thirteen percent of brokerage firms have experience working with commercial
building repurposing and 17 percent have experience with residential building
repurposing. Repurposing occurs when markets reuse space in buildings that once
served a different purpose altogether, such as factories which are converted to
lofts or apartments.

Commercial Building Repurposing

50%
40%
30%
45% 43%
20%
10% 13%
0%
Brokerage has Brokerage does not Don't know
experience working have experience
with commercial working with
building repurposing commercial building
repurposing

Residential Building Repurposing

50%
40%
30%
41% 42%
20%
10% 17%

0%
Brokerage has Brokerage does not Don't know
experience working have experience
with residential working with
building repurposing residential building
repurposing
2017 Sustainability Report
 Perception of Consumer
Interest in Sustainability
Half of agents and brokers find consumers (51 percent) are somewhat interested
in sustainability and nine percent are very interested.

Perception of Consumer Interest in Sustainability

Very
uninterested, Very interested,
4% 9%

Somewhat
uninterested,
10%

Neither interested or
uninterested, 26%
Somewhat
interested, 51%

2017 Sustainability Report

 Market Issues and
Considerations
Market issues and considerations that agents and brokers listed include
understanding lending options for energy upgrades or solar panels (44 percent),
improving energy efficiency of existing housing stock (40 percent), and lack of MLS
data about home performance and/or solar panel installation (34 percent).

Issues and Considerations in Market

Understanding lending options for energy 44%
upgrades or solar
Improving the energy efficiency of existing 40%
housing stock
Lack of MLS data about home performance 34%
and/or solar install

Valuation of solar panels on homes 30%

Lack of information and materials provided 29%

to REALTORS
Understanding how solar panels impact a 29%
transaction

Valuation of green certified homes 23%

Rising coastlines or floodplains 22%

Liability of misrepresenting a property with 20%

green features

Inability to search for green properties 19%

Tiny homes (600 sq ft or less) 13%

Lack of information and materials provided 13%

to other professionals
0% 10% 20% 30% 40% 50%

2017 Sustainability Report

 Comfort with Clients Questions
About Home Performance
Sixty-one percent of respondents are comfortable answering clients questions
about home performance, while 27 percent said they were somewhat
uncomfortable.

Comfort Answering Clients Questions About

Home Performance

Extremely Extremely
comfortable, uncomfortable, 6%
9% Uncomfortable, 6%

Somewhat
uncomfortable,
27%

Comfortable,
52%

2017 Sustainability Report

 Brokerage Energy
Reduction Goals
The majority of brokerage firms have not set goals to reduce energy by a certain
date at 44 percent, compared to only 10 percent of firms that have set goals to
reduce energy usage by a specified date. Nine percent are currently working
setting up and implementing goals.

Set Energy Reduction Goals by Brokerage

45%

40%

35%

30%

25%
44%
20%
34%
15%

10%

10% 9%
5%
4%
0%
Brokerage has Brokerage has Not yet, but Not yet, but Don't know
set goals to not set goals working on it plan to
reduce energy to reduce
by a certain energy by a
date certain date

2017 Sustainability Report

 Hybrid, Electric, &
Environmentally Efficient Cars
Only 11 percent of brokers use an environmentally efficient car, compared to 57
percent that do not currently use an efficient car nor plan to in the future. Twenty-
nine percent of brokers do not have an efficient car but do plan to use one in the
future.

Use of Efficient Cars While Conducting Business

60%

50%

40%

30% 57%

20%
29%

10%
11% 2%
1%

0%
Use an Use an Do not use an Do not use an Don't know
efficient car efficient car efficient car efficient car
and plan to but do not but plan to in and do not
continue in plan to in the the future plan to in the
the future future future

2017 Sustainability Report

 Working From Home
Nearly all brokerage firms allow their employees to work from home at
98 percent. Only two percent to do not allow remote work.

Brokerage Work From Home Policy

100%

90%

80%

70%

60%
98%
50%

40%

30%

20%
2% 1%
10%

0%
Brokerage allows Brokerage does not Don't know
employees to work allow employees to
from home work from home

2017 Sustainability Report

 Personally Took Steps to
Reduce Energy Use or Waste
A majority of respondents (86 percent) have taken steps to reduce waste and
personal energy usage, compared to 12 percent that have not taken steps.

Personal Energy and Waste Reduction

90%

80%

70%

60%

50%
86%
40%

30%

20%

10% 12% 2%

0%
Have taken steps Have not taken steps Don't know
2017 Sustainability Report
 Regional Breakouts
Number of Properties with Green Features Respondents Were
Involved With in Past 12 Months

Region: Northeast Midwest South West

0 63% 73% 74% 64%

33% 23% 23% 32%

1 to 5
1% 1% 1% 1%
6 to 10
1% 1% * *
11+

* Less than 1%

Wind Farms in Market

Region: Northeast Midwest South West

Wind Farms in 16% 21% 7% 16%
Market

No Wind Farms 70% 66% 77% 72%

in Market

Rooftop Solar Panels in Market

Region: Northeast Midwest South West

Rooftop Solar 89% 73% 73% 92%
Panels in Market

No Rooftop Solar 6% 19% 17% 6%

Panels in Market

2017 Sustainability Report

 Regional Breakouts
Experience with Commercial Building Repurposing

Region: Northeast Midwest South West

Experience with 12% 14% 11% 12%
Commercial Building
Repurposing
No Experience with 45% 48% 42% 45%
Commercial Building
Repurposing

Experience with Residential Building Repurposing

Region: Northeast Midwest South West

Experience with 22% 17% 17% 15%
Residential Building
Repurposing

No Experience with 36% 44% 39% 41%

Residential Building
Repurposing

Tiny Homes in Market

Region: Northeast Midwest South West

Tiny Homes in 24% 26% 22% 25%
Market

No Tiny Homes 60% 60% 64% 63%

in Market

2017 Sustainability Report

NAR Survey Respondents
Of the real estate agents surveyed, the median age was 54 years29 percent
falling into the age bracket between 55 to 64 years, 25 percent between 45 to 54
years, 17 percent between 65 to 74 years, and 16 percent between 35 to 44 years.
The primary functions of survey respondents was a sales agent at 69 percent,
followed by a broker-owner at 10 percent.
The regional distribution of survey respondents was fairly even between the West
(31 percent), South (31 percent), and Midwest (25 percent), and lower in the
Northeast (13 percent).
Thirty-nine percent of survey respondents worked 40 to 59 hours per week,
followed by 37 percent who worked 20 to 39 hours.
Nearly six in 10 (57 percent) of survey respondents worked suburban areas,
followed by 36 percent in urban and central city areas, and 26 percent in rural
areas.

2017 Sustainability Report

 Methodology
In February 2017, NAR invited a random sample of 54,878 active REALTORS to fill
out an online survey. A total of 2,867 useable responses were received for an overall
response rate of 5.2 percent. At the 95 percent confidence level the margin of error is
plus-or-minus 1.83 percent.

The primary measure of central tendency used throughout this report is the median
the middle point in the distribution of responses to a particular question or,
equivalently, the point at which half of the responses are above and below a particular
value.

2017 National Association of REALTORS

All Rights Reserved.
May not be reprinted in whole or in part without permission of the National
Association of REALTORS.
For reprint information, contact data@realtors.org.

2017 Sustainability Report

 The National Association of REALTORS, The Voice for Real Estate,
is Americas largest trade association, representing 1.2 million members, including
NARs institutes, societies and councils, involved in all aspects of the real estate
industry. NAR membership includes brokers, salespeople, property managers,
appraisers, counselors and others engaged in both residential and commercial
real estate.

The term REALTOR is a registered collective membership mark that identifies a

real estate professional who is a member of the National Association of REALTORS
and subscribes to its strict Code of Ethics.

Working for Americas property owners, the National Association provides a facility for
professional development, research and exchange of information among its members
and to the public and government for the purpose of preserving the free enterprise
system and the right to own real property.

NATIONAL ASSOCIATION OF REALTORS

RESEARCH DIVISION
The Mission of the National Association of REALTORS Research Division is to collect
and disseminate timely, accurate and comprehensive real estate data and to conduct
economic analysis in order to inform and engage members, consumers, and policymakers
and the media in a professional and accessible manner.

To find out about other products from NARs Research Division, visit
https://www.nar.realtor/research-and-statistics.

NATIONAL ASSOCIATION OF REALTORS

Research Division
500 New Jersey Avenue, NW
Washington, DC 20001
202-383-1000
data@realtors.org

2017 Sustainability Report