Australian renters are feeling the pinch of rising living costs, but new research reveals a potential solution: energy-efficient homes.
A report by REA Group and Origin, the PropTrack Origin Renter Reality Report, shows a significant number of renters are willing to pay extra for properties with smart energy features, offering landlords a clear opportunity to attract tenants and boost their bottom line.
The report, which surveyed over 4800 renters via realestate.com.au, found that a staggering 35 per cent would pay more for a home equipped with energy-saving technology.
The revelation comes as many renters are “being forced to make compromises around the size, location, and quality of the homes they can afford,” according to REA Group Senior Economist Anne Flaherty.
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“Energy efficient homes can offer much needed relief for renters on energy bills and can
contribute to broader environmental goals. Yet due to limited control over property
features, many renters are missing out on these benefits,” she said.
“Despite these barriers, a third of respondents stated they would be willing to pay more
for smart energy features, indicating motivations are there, yet stronger policies,
incentives, and education are needed to help renting households improve energy
efficiency. This could even begin with something as simple as a conversation with a
landlord to identify energy efficient opportunities in the home.”
Renters are asking for more energy efficient features in their home. Picture: Mark Thomas
However, significant barriers remain.
The biggest hurdle, cited by 56 per cent of renters, is a lack of control over property features. Upfront costs were also a concern for 27 per cent.
A majority (59 per cent) believe it’s the property owner’s responsibility to improve energy efficiency, creating a potential stalemate.
Alarmingly, one-third (33 per cent) of renters currently have no energy-efficient features in their homes, while another 22 per cent are unsure.
This means a large portion of the rental population is missing out on potential savings on their energy bills.
A solar metering app can help you stay on track with your power bills. Picture: Mark Wilson
Origin Retail Executive General Manager Jon Briskin highlighted the availability of “simple, affordable and temporary solutions to boost energy efficiency in rental properties,” such as draught-proofing and upgrading appliances.
He also called for policy updates and rebates to encourage landlords to invest in solar panels and batteries, ensuring renters share in the benefits of the energy transition.
Despite the barriers, almost half of Australian renters (45 per cent) plan to invest in energy efficiency improvements over the next five years, with 14 per cent willing to spend up to $5000.
The most common energy-saving behaviours renters currently employ are turning off lights (53 per cent) and appliances (47 per cent) when not in use.
REA Group economist Anne Flaherty
However, a third (32 per cent) haven’t made any changes to their energy use in the past year.
The most common energy-efficient features renters currently have are efficient lighting (21 per cent), solar power (15 per cent), and energy-efficient appliances (13 per cent).
The report suggests that open communication between renters and landlords is crucial.
Even a simple conversation could identify opportunities to improve energy efficiency in the home, leading to lower bills for renters and a more attractive property for landlords.
With rising energy costs a major concern for many Australians, energy-efficient rental properties could be a win-win solution.
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