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Energy Burden Transparency in the Housing Market

Reproduced from: Sussman, R., Bastian, H., Conrad, S., Cooper, E., Tong, E., Sherpa, A. and Porfalatoun, S. 2022. Energy Labels Affect Behavior on Rental Listing Websites: A Controlled Experiment.  American Council for an Energy-Efficient Economy. Available at: https://www.aceee.org/sites/default/files/pdfs/b2204.pdf

Low-income households face disproportionately higher energy burdens compared to households with higher incomes, in part because low-income housing tends to be more energy inefficient (i.e., relying on old heating systems, poor insulation, and less efficient appliances). 

A recent study by the American Council for an Energy-Efficient Economy (ACEEE) found that renters are more likely to choose apartments with better energy scores (a measure of building energy efficiency that ranges from 1 to 10) when energy score information is provided. For example, those looking for rental units at or below $750 per month were willing to pay 1.5 percent more in rent (about $11 more) for a one point increase in energy score.

Apartments with high energy scores save tenants money and reduce their energy burden through cheaper energy bills. Encouraging landlords, or even better, requiring them to transparently report energy costs in rental listings, would allow renters to make informed decisions, reducing energy burden for low-income households and increasing energy savings in the process.

Tanya Stasio

Researcher

Jordan Burt

Research Assistant


This is a part of the AEC Blog series

tags: Tanya Stasio, Jordan Burt
Thursday 06.16.22
Posted by Liz Stanton
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