Domain's Sustainability in Property Report released on Thursday found dwellings with sustainability features, referred to as 'green homes', receive more attention from buyers nationwide, particularly middle-income families.

Nationwide, green homes attract over 16% more listing views and spend 4% less time on the market.

Homebuyers in Adelaide are leading the charge in this growing preference for sustainable homes, with 52.9% more listing views.

They are followed by homebuyers in Melbourne (34.7%), Sydney (27%), and Brisbane (18.6%), generally reflective of the property performances of these cities more broadly.

Meanwhile, green homes in Darwin are the fastest ones to sell, spending 18% less time on the market.

"This performance is likely driven by two major factors: an increasing number of environmentally conscious buyers, leading to greater demand for greener homes, and the lifestyle benefits associated with such properties," Domain chief of research and economics Dr Nicola Powell explained.

"Features like cross-ventilation, north-facing orientation, heat recovery ventilation, and solar panels not only contribute to environmental sustainability but also offer practical advantages, potentially reducing maintenance costs for occupants."

Middle-income households drive the demand

Notably, the research found that middle-income families are leading the charge in adopting efficient features, thus driving up the demand for green homes.

The researchers consider their latest findings "surprising" given that green homes built to higher energy efficiency standards tend to have a premium over their non-energy-efficient counterparts.

The report reveals a notable overrepresentation of middle-income households in suburbs featuring the highest energy-efficient house price premiums.

The average household income in Australia is $121,000.

Best-performing suburbs for green homes

Here are the top suburbs per state with an EE-house price premium.


EE house price

Annual household income

Mosman (NSW)



Reservoir (VIC)



Buderim (QLD)



Mount Barker (SA)



Como (WA)



Most popular green additions to the home

The greatest value-adding features for green homes are solar panels and double-glazed windows.

"Middle-income households may be investing in energy-efficient (EE) features to lower their household running costs and align with their personal values of environmental consciousness," Dr Powell said.

Because of features that promote better use of sources, green homes typically consume less power for heating and cooling, thereby leading to reduced energy bills.

"Another explanation could be the prevalence of new-built homes in these areas with energy-efficient features included," she added.

"It is worth noting that with some of these suburbs being in regional areas, it shows Australians across all socio-economic demographics are motivated to make their homes more sustainable."

What makes a home green?

For a home to be sustainable, it typically requires features such as solar panels, double-pane windows with low-emissivity (Low-E) coatings, high-quality insulation, air sealing, efficient HVAC systems, and LED lighting, among others.

Green homes are generally well-ventilated, water efficient, well-insulated, and overall, resilient against climate change.

In Australia, the energy efficiency of a home is measured against the rating system of the Nationwide House Energy Rating Scheme (NatHERS).

An energy rating of one to 10 stars is given to a building that has been built to a design that meets the energy efficiency requirements of the National Construction Code (NCC).

A higher star rating means the home is more comfortable to live in and is cheaper to run. Lower star ratings mean a home is more costly to keep comfortable.

"As Australians become increasingly aware of the health, environmental, and cost benefits of living in more sustainable and energy-efficient homes, we're naturally seeing a significant surge in demand for these properties," said Davina Rooney, chief executive officer of Green Building Council Australia.

"This shift is particularly welcome, given that residential properties contribute to 10% of Australia's carbon emissions. It's encouraging to see this growing preference, which promises to reshape our housing market."

Generally speaking, many lenders offer green home loans to properties with NatHERS ratings of 7-stars or higher.

While more expensive at the outset, building a green home could be more cost-efficient as homebuyers can access lower or discounted rates on green home loans offered by several mortgage lenders in Australia.


Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.99% p.a.
6.51% p.a.
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  • Low rate home loan with added benefits, Offset sub-account available at no added cost
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 0.84% discount on your variable rate home loan T&Cs apply
5.88% p.a.
6.38% p.a.
Principal & Interest
5.95% p.a.
6.23% p.a.
Principal & Interest
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