Heat pumps offer an efficient alternative to standard HVAC systems and are often a selling point for sustainability-conscious buyers.

Homeowners in America installed 4 million heat pumps in 2022, beating out fossil-fuel-powered gas furnaces for the first time ever. Why? Cost savings, efficiency, versatility and safety.

As heat pumps continue to go mainstream, it is increasingly important for real estate professionals to understand why these systems represent a major selling point and what buyers need to know. The best way to market and sell energy-efficient homes is to understand the benefits systems like heat pumps can deliver to builders, developers, homebuyers and the environment.

Heat Pump 101

Heat pumps pull heat from either the air or underground and use it to distribute heat to a home. They flow in reverse and use a refrigerant to also provide cooling. Heat pumps require electricity to run but deliver more energy than they use by concentrating and moving heat rather than generating it directly.

The Three Types of Home Heat Pumps

1. Cold-climate air-source heat pumps extract heat from the outside air and distribute it throughout your home. During warmer months, this process is reversed to provide cooling by pulling heat out of your interior space. Cold-climate air-source heat pumps are generally best suited for single-family homes (central and ductless options), apartments, additions or those rooms that always seem too hot or too cold no matter what you do to the thermostat.
2. Geothermal heat pumps, also known as ground-source heat pumps, distribute heat throughout a home by extracting heat from the ground using an underground pipe system. During warmer months, the process is reversed to provide cooling. Geothermal systems are the most efficient type of heat pump and can provide year-round comfort. Since temperatures remain consistent underground regardless of the temperature above ground, these heat pumps are extremely effective in colder climates.
3. Heat-pump water heaters, also known as hybrid water heaters, use electricity to pull heat from the surrounding air and transfer it to water enclosed in a tank. Because they use electricity to move heat from one place to another, rather than generating heat directly, these water heaters are up to three times more efficient than conventional electric-resistance water heaters. In addition to warm air, heat-pump water heaters draw moisture from their surroundings and can reduce the need to run a dehumidifier in muggy locations.

There are whole-home and partial-home options when it comes to heat pumps.

Whole-home heat pumps take care of all the heating and cooling in a home—no additional systems are necessary. Homeowners often find immediate cost savings if they were previously heating with oil, propane or electric baseboards.

Partial-home or single-room heat pumps are used to supplement an existing system, often in rooms that struggle with temperature control like a second-floor bedroom or an addition.

What Homeowners Need to Know About Heat Pumps

As technology continues to advance, today’s cold-climate heat pumps are all-in-one heating and cooling systems that are environmentally friendly, extremely efficient and affordable to operate. The primary benefit to all homeowners is that heat pumps are designed to work efficiently in cold climates while doubling as a cooling system in the summer, eliminating the need for different systems depending on the time of year.

Typically, homeowners can expect their electric bill to increase when switching to a heat pump, but fuel costs are likely to decrease or disappear. Depending on what type of heat source they are switching from, the decrease in fuel bills could offset the increase in electric bills. It is difficult to identify global cost savings for heat pump installation without taking factors into consideration like each homeowner’s specific location, current heat source, square footage and choice of system, but homeowners may be able to save thousands of dollars with upfront installation incentives, federal tax credits and low-interest financing options.

The Benefits of Heat Pumps Over Fossil Fuels

• Efficiency: The cost of heating and cooling your home with a heat pump is typically less than oil, propane or electric resistance and is more environmentally conscious.
• Control: High-performance zoned temperature control allows homeowners to individually control the heating and cooling preferences for different rooms.
• Safety: There is no combustion of fossil fuels, fuel storage or carbon monoxide emissions associated with heat pumps. And heat pumps have the lowest carbon emission of any heating source.
• Incentives: Many states and energy companies offer rebates, financing options and other financial incentives to make purchasing and installing heat pumps more affordable for homeowners. Significant federal tax credits through the Inflation Reduction Act provide a tremendous opportunity for homeowners to switch to heat pumps.
• Ease: Heat pumps require minimal maintenance and eliminate the hassle of scheduling fuel deliveries or seasonally installing/removing AC units.

Maintenance Considerations

Heat pumps require minimal upkeep, but like all home systems, proper maintenance is key to efficient operation. Energy consumption can vary greatly between a well-maintained heat pump and a neglected heat pump. Dirty filters, coils and fans can reduce airflow, decrease system performance and even damage a system’s compressor. Homeowners should have a professional technician service their heat pump annually.

Heat Pumps in Cold Climates

There are unfortunate myths about the reliability of heat pumps to perform in cold climates that stem from outdated information. Newer, more advanced technology has resulted in modern, high-efficiency heat pumps that reliably heat and cool without the need for a backup system.

It is important to be aware that some air source heat pump models are not suited to extremely low temperatures. Geothermal heat pumps and cold-climate air-source heat pumps are specifically rated to perform in cold climates and are perfectly capable of heating homes in even the coldest of temperatures. Homeowners will experience maximum efficiency and comfort by fully weatherizing their homes to improve insulation and air sealing.

When it comes to heating or cooling during a power outage, heat pumps are no different than any other furnace, boiler or air conditioner. A generator or supplemental heating that does not require electricity like a fireplace or woodstove could be beneficial for any homeowner concerned about power outages.

Your clients trust you to stay up to date on the latest technologies and educate them on the advantages of different home systems, like heat pumps, before they make an offer. To learn more about heat pumps specifically for cold climates, contact the energy authorities in your state.

National Association of REALTORS®

Reprinted with permission

From ecosystem conservation to “new” darker neutrals in exterior paint, we look at the trends set to take hold in the industry this year.

Three Key Takeaways

• Advise buyers that nobody should copy trends for their popularity since they change over time; a better approach is to seek joy.
• Aging boomers have more options to choose among, from staying put with features that aid safety to going to a facility with specialized care.
• Landscapes that conserve nature and shelter pollinators and wildlife are designed for private backyards and shared communities.

Staying abreast of what’s new and innovative in design and real estate is important, not to be trendy but to learn about innovative materials, systems and products to live more sustainably and benefit the planet. Also, new uses for rooms can maximize square footage and our surroundings to add joy to our lives. The following 10 trends are worth considering since they can positively influence whether homeowners reside in single- or multifamily housing.

Homeowners Are More Apt to Stay Put

With interest rates for a 30-year fixed mortgage still high, home prices holding steady and inventory still low, many homeowners plan to stay put, optimizing or expanding their existing square footage. Laurel Vernazza, Home Design Expert at The Plan Collection— Scarsdale, N.Y.-based company that sells pre-drawn plans—says that for those with no plans to move, the wish list includes:

• Sustainable features
• Accessory dwelling units as zoning laws change
• Pickleball courts
• Remodeled basements with saunas
• Media centers and game rooms
• Home offices as working from home continues
• Outdoor space, not just at ground level but above as well
• AI-driven technology to make homes easier to use and more energy-efficient

Why now? Homeowners want to be active but decrease maintenance and energy consumption. They favor sustainable materials sourced locally to pare carbon footprints and support local businesses, which is especially true for millennials and Generation Z. Many materials reflect better waterproofing, and garages may have room for battery back-up systems if power goes out, says architect Jonathan Boriack, AIA, LEED AP, principal with KTGY in Oakland, Calif.

Specialized Needs for an Aging Population

Architectural firms like The Architectural Team (TAT) outside Boston are designing facilities for specialized needs, such as The Cordwainer, which will have private and double rooms and a host of amenities including a two-story atrium, performance center, game room to stimulate the brain, and memory care garden. The bedrooms will be divided between two neighborhoods so residents can safely wander, says TAT architect Anthony Vivirito. Also critical is light to help with circadian rhythms and mood. “Biophilic elements and the focus on unique spaces for invigorating activities and entertainment required stepping away from traditional practices,” says Tamilyn Liesenfeld, president and CEO at Anthemion Senior Lifestyles, which owns and operates The Cordwainer in Norwell, Mass.

Why now? With aging boomers numbering 76.4 million, more attention is paid to their housing needs when they can’t stay at home, which includes many of the estimated 6.7 million who have Alzheimer’s disease.

Smaller Single-Family Homes and More Townhomes

Variety is the spice of homebuilding. Currently, homes are shrinking in size, with the median for single-family houses at 2,261 square feet and the mean square footage of new single-family homes down to 2,469, according to the National Association of Home Builders. One of the most popular styles is the ranch house. The style also offers the flexibility to be opened up indoors and to the outdoors, according to Vernazza. Attached townhomes and stacked flats have gained popularity due to the need for smaller square footage in dense sites, says Boriack.

Why now? The main reasons for smaller single-family homes are high mortgage rates and lifestyle changes that favor fewer bedrooms. As far as townhomes and stacked flats are concerened, the economics of for-sale property works with current market finances more for developers than rentals do. Land shortages make attached and stacked units smart choices.

Bigger Apartments

At the same time that single-family homes are shrinking, apartments are increasing from an average of 870 square feet before the pandemic to closer to 1,000 square feet, says architect Sean M. Stadler, FAIA, LEED AP, a managing principal with WDG Architecture’s Washington, D.C. office.

Why now? Many renters want more space to work from home and favor more bedrooms, if they can afford, Stadler says.

Homeowners Want Sustainable Energy Use

Sustainability isn’t going anywhere. In fact, it’s growing in popularity, and received a boost in January 2023, when the Department of Energy announced federally backed incentives to help builders make DOE-certified Zero Energy Ready Homes their standard. An example of a builder focused on both energy efficiency and lower construction waste is Netze Homes, based outside Dallas, which uses steel that it recycles from cars. It claims its houses are 20 times stronger than those built from wood. Since the frame is built in a factory to exacting specifications, the homes are tighter and the resulting lower air exchange makes them more efficient.

Why now? Sustainable homes do a better job of withstanding extreme weather, are fire-resistant, and curb termite damage, wood rot and mold. Energy-efficient homes help residents save up to 35% on their electric bills and cut 40% of waste since the frame is formed in a factory. These homes have lowered carbon emissions by 50% against the industry average, proponents say.

Luxury Spec Building Demand is on the Rise

The demand for spec luxury houses and townhomes continues, particularly in South Florida, according to J.C. de Ona, president of the southeast division of Centennial Bank. Waterfront sites are particularly desirable. “Some demand may have softened so that there now may be 10 to 20 buyers rather than 100 at a house, but it’s still strong and prices remain up,” he says. Favored features include a modern design with flat roofs, wood detailing, a pool, an open plan and beautiful kitchens, he says.

Why now? After slowing from 2012 to 2014, spec building has picked up, due to an uptick in migration. Jose R. Boschetti Jr., managing partner of The Boschetti Group in South Miami, Fla., also sees demand from buyers wanting a minimalistic design and maintenance-free living with artificial turf, porcelain floors, smart features and pools in close proximity to the house to maximize indoor/outdoor connection.

An Abundance of Multifamily Amenities in Small Buildings

People are still looking for features in smaller buildings, says architect Joshua Zinder of Joshua Zinder Architecture + Design in Princeton, N.J. His four-story, six-unit, mixed-income building, Nelson Glass House, reflects the trend of “amenity creep” that has “percolated down to smaller buildings,” he says. Units have terraces, shared parking, bike storage, “Zoom rooms” for online meetings and a ground-level coffee shop. “Having just a good location doesn’t cut it anymore,” he says. Other popular amenities, he says, are a grocery store, pet trail, package center, and lounge and lobby for interaction—sometimes with classes—and electric vehicle charging stations.

Some buildings use amenities like EV stations to add revenue, according to Swtch Energy, an EV charging solutions provider that works with multi-tenant properties. Many buildings add programming through a property management company like FirstService Residential, says Katie Ward, the company’s regional president for Texas. The trend has evolved that property management doesn’t just plan space but creates a culture to tailor connections to needs through events, she says.

Why now? Amenities allow smaller buildings to compete with bigger ones, retain residents and attract newcomers, says Stadler. One challenge is having amenities that are appealing when a building opens, since the timeline for delivery may be five years.

A Continued Focus on the Kitchen

The kitchen remains the heart of the house with old trends in force along with new ones gaining traction, says designer Mick De Giulio of de Giulio Kitchen Design outside Chicago. Induction cooktops continue to increase in number, in part because new homebuilding regulations in certain municipalities require phasing out gas ranges for safety and sustainability, according to The Plan Collection.

De Giulio says an organized, walk-in pantry; more light through big windows or LEDs in warmer colors; artisan and hand-crafted features such as hand-scraped wenge wood; and a mix of materials like German silver, stainless with special finishes, and bronze are popular, as well as the island.

Why now? In most cases, the kitchen is one of the most used, most seen rooms in a home. People are still eager to congregate in the kitchen, and within the space, certain trends stand out. A kitchen redo makes sense since, if it’s done well, it can last 30 years, though appliances may need to be replaced along the way, De Giulio says.

Natural, Native Landscaping as a Priority

Whether in communities or private backyards, homeowners want to conserve ecosystems. In smaller communities, even in urban settings, variations of the conservation community or “agrihood,” like Pendergrast Farm in Atlanta, are emerging. The 20 energy-efficient, solar panel–ready homes, wired for EV charging stations, will have a Home Energy Rating System rating of 50 that will use 50 percent less energy than comparable new homes. Seventy percent of its land will be preserved for woods and a working farm.

In private backyards, “rewilding” uses native plants to create habitat. Hillary Peters with Mariani Landscape in Lake Bluff, Ill., says this trend is popular among clients who are interested in restoring ecosystems and biodiversity. By bringing native plants to a landscape, homeowners can create a space that meets needs and supports wildlife.

Why now? Such communities bring together features that reflect homeowner interest in conservation, and the scarcity of land makes this viable. Likewise, homeowners are aware of their impact on their environment and the need to protect wildlife. Any little bit helps, Peters says—installing a birdhouse or water feature or using native plants and grasses makes a difference.. She advises against cultivars, which do not always serve pollinators.

“New” Neutrals for the Exterior

Neutral colors are more popular, says residential and commercial color consultant Amy Wax in Montclair, N.J. “They are a safe choice, offer the opportunity to decorate a home with more emphasis on landscaping, give homeowners the chance to market their home without having to repaint and are not the subdued hues of the past,” she says. Many neutrals are even darker, such as midnight blue, charcoal gray and true black for drama.

Why now? Dark exterior accents express confidence with a bold street presence. Adding a periwinkle blue front door or taxicab yellow or hot pink accent is fair game. Durability should be weighed since darker colors may fade, so it’s best to apply paint with a subtle sheen to protect surfaces.

National Association of REALTORS®

Reprinted with permission

From cane frames to woven chair backs, a touch of fast-growing rattan adds warmth to interiors.

Did you know your porch’s wicker furniture and the arched cane bookshelf at your favorite coffee shop might be made from the same material? Warm and natural, rattan has been an interior design mainstay for decades, most notably in the 1970s.

Though rattan looks similar to bamboo, rattan is more pliant, making it a more flexible choice for furniture and framing. Fortunately, rattan is also an eco-friendly material—good news for the many real estate professionals who report more and more clients are interested in sustainability.

Rattan 101

Rattan is a type of climbing palm whose flexible stems can be used to make cane furniture. Strands cut into smaller strips can also be used for weaving mats, baskets or flexible coverings.

“[Rattan] is a sustainable material due to its fast-growing nature,” explains Brooke Moore, an interior designer with California-based presale home renovation company Freemodel. “Unlike other types of wood that can take up to 20 or 30 years to grow, rattan can be fully grown and harvested in only a couple of years.”

Still, sustainability isn’t always straightforward. Rattan, like bamboo, grows in tropical regions. The energy used to transport it from the rainforests of Asia, Africa and Australia impacts the product’s overall sustainability. Clients interested in genuinely sustainable products should work with someone knowledgeable about the material’s origin and production process.

Rattan Trends in Home Design

Rattan looks best in bohemian, mid-century modern, and coastal interior spaces, according to Bilal Rehman, a Gen-Z interior designer and owner of Bilal Rehman Studio in Houston.

Here’s how Moore and Reman suggest using rattan in your next interior design project.

Rattan headboards

Looking to warm up a home listing during staging? Consider a rattan headboard. The yellow-brown color and ridged texture of rattan weave add visual interest and warmth.

“You can DIY this look by taking a headboard frame and filling in the frame with rattan,” Moore says. “This brings a softer look of wood into a room, which is ideal for a bed that is supposed to feel soft and inviting.”

Rattan-backed chairs

Chairs with rattan weave on the back or seat have been popular for many years. The look of this weave has been recreated and mass-manufactured with less sustainable materials such as resin or vinyl.

“Jeanneret and Cesca chairs are popular mid-century modern chairs designs that are commonly used with rattan material,” says Moore.

Rattan frames

If you haven’t noticed them yet, you’ll soon start to see rattan cane framing mirrors and art at various big-box home decor stores. This is an easy way to incorporate rattan into the living room and bedroom decor.

“I really admired a few mirrors I’ve come across that are framed in rattan rather than metal,” says Rehman. “I found it really interesting to mix the glamor of the mirror with the rougher aesthetic of rattan.”

Stained rattan webbing

While many appreciate rattan’s natural color, the hue is too warm for some settings. No worries, says Rehman. Darkening rattan webbing or wicker can quickly elevate furniture. This is especially useful (and sustainable) when working with vintage rattan pieces.

“The natural color of rattan tends to be a lighter tan-orange hue, so when stained to blend into the surrounding space you’re only left with the textural element of rattan, which can be really stunning,” he says.

Finding Sustainable Rattan Resources and Retailers

Rattan is one of many sustainable design materials. Clients interested in making a home project or renovation more eco-friendly often rely on a mix of sustainable materials, including cork, recycled glass and reclaimed wood.

Both Moore and Rehman say clients seeking quality, sustainable rattan will need to do their research or partner with a professional who does. Rattan can be mimicked by other materials, warns Rehman. Even authentic rattan may be transported or manufactured in a way that undermines its sustainability. To avoid these pitfalls, Moore suggests directing clients toward companies with green accreditations like the Forest Stewardship Council (FSC) certification.

Retailer recommendations from Moore and Rehman:

• West Elm for a retail website that allows consumers to narrow searches to sustainable or Fair Trade pieces
• The Rattan Company for indoor rattan furniture that is sustainably sourced
• Etsy for rattan pieces that support small businesses
• Vintage furniture stores for durable, authentic rattan pieces
• Local furniture-makers for one-of-a-kind rattan pieces that help small businesses

National Association of REALTORS®

Reprinted with permission

Designers and stagers are finding ways to offer people who work from home more versatility than a dedicated workspace often provides.

Even though remote work remains commonplace, some real estate professionals and home stagers say the home office is losing its luster. Many home buyers are reclaiming this space for other nonwork uses.

The shunning of the home office is already taking root at The Astor, a recently restored luxury condo building in New York. Ash Staging, an interior design and home staging firm, recently chose to omit the home office when styling a model residence in the historic building. The firm transformed the fourth bedroom, traditionally a home office, into a flexible den with lounging space geared toward relaxation, entertainment or as a quiet nook for work. The sales team at the building believes this setup is resonating more with home buyers.

“We continue to see luxury buyers valuing flexibility and versatility in their space,” says Kyle Egan, a real estate agent with Douglas Elliman who handles sales at The Astor. “So, this area was designed as a cozy lounge and media room with a desk nook that can serve as a work spot when needed. We’ve seen a very positive response to this setup as buyers continue to seek out layouts and floorplans that allow the freedom to customize their home to fit their lifestyle.”

Drawing from similar inspiration, the real estate and design team at 53 West 53, a Manhattan condo tower with 161 residences, also decided to exclude the home office in a recent home staging project. Instead, the sales team converted an office space into a game lounge complete with a fully stocked minibar and foosball table.

Quitting the Home Office

Recent studies have shown that at-home workers have flexibility when choosing where in the home to work. They’re no longer tethered to cords and outlets, and they don’t need to plug into a dedicated space each day. They can easily take a laptop to a kitchen island, living room sofa or even a neighborhood coffee shop.

About one-third of consumers who work remotely say they have a dedicated office space at home, according to the “State of Remote Work 2023,” a study conducted by social media technology firm Buffer. But of that group, 45% say their “home office” is located within another room, like a bedroom, kitchen or living room. Fourteen percent of remote workers say they prefer to move from room to room during their workday.

Some homeowners may prefer not to devote an entire space to a home office. They’re seeking an easily adaptable, flexible space, whether that’s for entertainment, lounging or even the occasional work, Egan says. “Homes became everything for people during the pandemic—their office, their movie theater, their bar and restaurant, their kids’ classroom and even more,” he adds. “Now that many people are back to working in offices, at least part of the time, they’re ready to ditch the home office and incorporate a flexible space that brings more fun and vibrancy back into the home.”

Not a Singular Space

Egan says study or work nooks may offer the same benefits as a larger home office. However, the goal remains the same: prioritizing design and comfort. “We recognize the modern buyer’s desire to blend functionality and aesthetics without compromising valuable space,” he says, noting this trend may accelerate in dense markets like New York.

Researchers have been studying the design of home office spaces and what works best for productivity. Many studies attribute a dedicated office space to a boost in productivity and avoiding constant distractions. But the studies also acknowledge that’s not possible  for everyone.

Georgia Southern University reviewed numerous studies that explored home office design during the pandemic. The review found the best results from a home office that prioritizes ergonomics and elements from nature and takes into account light and noise. Regardless of where that “office” is located and whether it has to serve multiple purposes, a few research-backed tips for setting up an at-home workspace include:

• Pick a spot near natural daylight, preferably near a window. Otherwise, add ambient and task lighting.
• Use headphones to block out noise, if needed, and portable screen dividers to block out visual distractions if you don’t have a dedicated workspace.
• Incorporate nature or go outside for fresh air occasionally. Set up your workspace near greenery and plants—nature views have been tied to increased energy for remote workers.
• Get moving: Studies suggest that remote workers make a point to stand up and move around for at least two minutes every 30 minutes during the workday to help avoid eye strain, back pain and headaches.
• Add in a recreational spot. Researchers suggest having a lounging area in or near your office for a different type of seating than a desk chair for short breaks.

Egan says he believes more home shoppers will continue to prioritize multi-use spaces inside the home for work and play. As such, his company will continue to stage homes to showcase how spaces can be used in multiple ways. “We want to show the adaptability of the space and its ability to be integrated into all lifestyles—from gathering with friends to hosting a family movie night to taking a work call,” Egan says.

National Association of REALTORS®

Reprinted with permission

Bathrooms are getting smaller, but that doesn’t mean they skimp on amenities. Smart tech, comfort and spa-like serenity still set the tone.

Three key takeaways:

• Bathrooms are getting smaller, and design must accommodate the space constraints.
• Technology makes the space cleaner, more efficient and advanced.
• Though the costs of construction and material are climbing, a splurge or two should be budgeted to add joy.

Bathrooms are expected to get smaller in new construction, according to Carrie Tolman, associate principal with KTGY Simeone Deary Design Group in Chicago. As such, she expects the popular spa-inspired bathroom will gain more appeal, since its hallmarks make it feel larger and more luxurious.

When it comes to remodeling or building new, though, aesthetics aren’t the only driving force. COVID-19 sparked a desire for a greater sense of cleanliness, which has spurred interest in features like antimicrobial surfaces and self-cleaning toilets. Likewise, efficiency and environmentally friendly materials reign supreme for many.

Technological and material improvements offer benefits such as the ability to dim lights to conserve energy; toilets that can deodorize air, offer dual flushing, heat seats and automatically open and close their lids; showers with steam units to warm arthritic joints; and outlets in medicine cabinets and vanity drawers for quick convenience.

On the fun front, the rooms have become an entertaining mecca. According to the National Kitchen & Bath Association’s 2024 Bath Trend Report, they now feature everything from integrated audio to beverage stations with coffee makers and even small refrigerators for skincare products or cold drinks, says Pamela McNally, senior vice president of marketing and digital at the association.

Due to rising prices for products and labor, designer Charleene Doverspike of Charleene’s Houses near Baltimore says, remodeling costs for bathrooms have increased more than for any other room. Part of the reason, she adds, is that most of her clients seek a luxurious, relaxing vibe that calls for high-end materials, fixtures, faucets and fittings. Chicago-area broker Danielle Wylie of Baird & Warner agrees that buyers want an upscale, personalized ambiance rather than what’s seen everywhere. Remodeling magazine’s 2023 Cost vs. Value Report puts the average midrange bath overhaul at $24,606 with a 66.7% return on investment and an upscale redo at an average of $76,827 with 36.7% payback.

To keep within a budget and attract buyers, Marina Case, principal designer at The Red Shutters in upstate New York and Martha’s Vineyard, steers clients to classic choices for big-ticket items. Here are other tips to share, along with the caveat that no single choice is favored by all, say both designers and the NKBA.

Color Palette

The spa influence shows up in mostly pale palettes of gray and white to help create a healing, relaxing vibe that Wylie says many buyers favor. However, pale greens and other hues that can also contribute are showing up in many primary bathrooms, says Denise Benach, director of design at Lexington Homes in Chicago. In fact, the NKBA report says green is preferred to white.

And some gravitate toward what’s different, such as dark palettes for a moody Gothic effect, says Nancie Allen, senior designer at Joshua Zinder Architecture + Design in Princeton, N.J. Generally, the primary bathroom is a place where pops of color are used sparingly, she says.

A secondary or kids’ bathroom is the place to have fun with bolder colors and patterns, and a powder room may be a good place to use wallpaper, including today’s big florals, says designer Tom Segal of Kaufman Segal Design in Chicago.

Shower Style

After years of interest in bigger showers, fewer people want oversized spaces due to room size limitations and the realization that it’s harder to keep a big space warm, says architect Bob Zuber, associate principal with Morgante Wilson Architects outside Chicago. They also don’t want so many gadgets that mimic a car wash, Segal says. The NKBA report cited the use of touch pads, signaling a rise in shower experiences using technology. Comfort is a must, and a bench or ledge is often popular.

Niches are common, now in an elongated narrow shape for bathroom products, says Dominique Bonet, partner and lead designer with LD&D Design in Miami, and may be designed with the same tile or stone as the shower wall. Doverspike also likes niches that blend in: “The goal is to make it seamless with the entire space,” she says. Homeowners with larger budgets may add a steam unit, which could run from $5,000 to $7,000. Another luxury option is to place a tub and shower in an open “wet room,” which Bonet sets atop a platform as a focal point. Some other designs forgo any door, according to the NKBA.

Future Proofing

Safely aging in place, what Zuber terms “future proofing,” has led to more zero-threshold showers and tiles with grout to prevent slipping. Additional features include higher vanities for less bending, grab bars by a toilet and in a shower or tub, accessible light switches and higher toilet seats.

Tub Allure

Despite talk of tubs disappearing, most homeowners still want one in their house, primarily for resale or for children, says Wylie. If they have room and their budget permits, oval-shaped freestanding models remain popular because of their glamorous look, Bonet says. “A lot like it because it offers them a moment of relaxation,” she says.

Toilet Tower

If there’s space, homeowners still want a water closet or at least a partial wall for privacy. Though Toto and other brands manufacture upscale models with many features, including a bidet attachment, not all homeowners seek that amenity given the increased cost.

Vanity Stars

Wylie says many buyers prefer long countertops with ample space and two sinks when space allows. These days, wood is favored, particularly a light option like white rift oak or a bright walnut, Segal adds. The countertop is most likely to be a quartzite, natural stone or marble, though some avoid marble for fear of damage. Segal says renewed interest in medicine cabinets make them more popular, and it’s been modernized with brass, matte black or polished nickel edging rather than chrome, outlets in interiors, and sometimes an integrated light and defogging device.

Lighting Layers

A mix of LED layers, such as sconces by a medicine cabinet or on a mirror and recessed cans in toe kicks and often over a tub, offer good light says Benach. The ability to dim lights is essential. The room also looks best if there’s a window for natural light.

Tile Style

Doverspike hears more requests for zellige handcrafted-style tile, which originated in Morocco and was made from local clay, glazed and fired to highlight irregularities. It’s generally used on walls. Others favor classic subway tiles in herringbone or chevron patterns, says Allen. Benach likes porcelain tile both on walls and floors because it’s durable, impervious and affordable.

In many cases, floor tiles have gotten larger, but patterns like herringbone and hexagons are still popular, especially in the shower, the NKBA says. Segal sees a trend toward marble tiles that suggest movement, stones that are waterjet-cut into interesting patterns, and cement tiles with decorative patterns. For floors, there are other options. Karastan suggests BelleLuxe waterproof laminated wood with a proprietary WetProtect system that protects the subfloor, too, and LuxeCraft is a luxury vinyl tile that withstands water.

Where to Splurge—and Not

The comfort of heated floors has made them more popular, while heated towel racks are less requested. More wallpaper choices can now withstand the room’s humidity. For those who love nature, the bathroom can be ideal for displaying plants, Allen says. Faucets can become eye candy, and a good ventilation system provides cleaner air and a quieter backdrop.

What to forgo: Bonet cautions against spending too much money for matte black products, saying that the trend may decline over time. Others suggest avoiding electric fireplaces, cultured marble countertops, acrylic tubs and showers, partly tiled shower walls and low 14-to-17-inch-high tubs. The NKBA report nixes Hollywood-style lights.

National Association of REALTORS®

Reprinted with permission

From textured walls to industrial-style flooring, concrete makes an excellent choice for eco-conscious clients searching for high style and low maintenance.

Concrete has been a construction mainstay for a very long time. Perhaps that’s why many Americans consider concrete a purely functional material. But designers say this durable material can also add sleek sophistication and exciting texture to new homes and renovation projects.

One more point for concrete? It’s a sustainable material, making it a desirable option for the environmentally conscious. Recently, more than 50% of real estate professionals reported that their clients have shown an interest in sustainability, according to National Association of REALTORS® data.

Sustainable Concrete 101

As long as sourcing, production, and construction methods are considered, concrete makes for an incredibly sustainable material, according to designers.

Concrete’s durability reduces the need for frequent replacements, minimizing resource consumption over time, says Danielle Nash, project director and interior designer with Freemodel. “Concrete also can be recycled at the end of its life … and the techniques used in concrete production are energy efficient.,” she adds.

But the beauty of concrete is that it helps homeowners keep saving on energy and utility costs.

“Concrete’s thermal mass properties help regulate indoor temperatures, reducing energy consumption,” explains Bilal Rehman, interior designer and owner of Bilal Rehman Studio in Houston. He says concrete’s potential to reflect sunlight can also reduce “the urban heat island effect” — the higher temperatures experienced in cities compared to surrounding rural areas.

Sustainable Concrete Trends in Home Design

Concrete, like cork or reclaimed wood, can be used in large-scale and small room renovations. It’s a versatile material that can add an industrial or earthy textural aesthetic, depending on its use in a space.

Here are five ways concrete can be used in upcoming personal or client construction and design projects.

Concrete Wall Finishes

Looking for a fun alternative to wallpaper or wood paneling? Nash and Rehman suggest concrete.

“Textured or stamped concrete used on walls adds visual interest and a unique tactile experience,” says Nash.

For a visual pop in new construction and remodels, Rehman loves the high-end, sophisticated look of a single concrete wall surrounded by conventional sheetrock walls.

Concrete Flooring

Concrete flooring has been used in garages and industrial spaces for decades. Today’s homeowners have a wide range of concrete flooring options that elevate the look of a space without adding complicated maintenance protocols.

Rehman opted for sleek black concrete floors in his Houston-based studio. “The concrete floors create an intense contrast to the more opulent elements like lighting and furniture, resulting in a captivating interplay,” he says.

Concrete Light Fixtures

Nash says minimalist pendant lights made of concrete are a great way to play with this material without committing to major changes like concrete walls or concrete flooring.

Unlike glass light fixtures, which emit a glow, opaque concrete shades and pendants act as spotlights. The way concrete pendants channel light in a single direction can help add a dramatic element to layered lighting schemes.

Concrete Countertops

Concrete’s durability and low maintenance make it ideal for kitchens and bathrooms.

Homeowners who have latched onto the minimalist decor trend will also appreciate concrete slab countertops’ sleek, modern appearance. Because pigments can be added to the concrete before it is poured, concrete countertops are available in every color. Finishing the countertop with a stain can even give the concrete a look that mimics natural stone, according to Angi.

Concrete Accessories

“For those that want to dabble and experiment with the use of concrete, accessorizing is a wonderful way to see if the look is something that suits your design needs,” says Nash. “Many [retailers] offer a wide range of accessories, ranging from coasters to sculpture art pieces for people to experiment with how much concrete to incorporate into their design.”

Finding Sustainable Concrete Resources and Retailers

Not all concrete products are the same. Homeowners should understand that unsustainable sourcing and production methods can counteract the low carbon footprint of the concrete product itself.

“Look for concrete suppliers in your local area that prioritize sustainability. Many suppliers provide information on their practices, such as the use of recycled materials or energy-efficient production methods,” says Nash, who also recommends asking architects, contractors or other homeowners for recommendations on sustainable concrete sourcing.

Wondering which retailers offer trendy concrete home decor and furniture? Both designers recommend CB2. Other recommendations include:

• West Elm
• Holly Hunt
• Umbra Shift
• Concrete Cat

“Concrete is definitely one of those materials just like rattan that circulates in and out of trend really often and really fast,” says Rehman. “When not in trend, you’re left with a few options like Etsy, vintage finds or even, dare I say, a little DIY moment.”

National Association of REALTORS®

Reprinted with permission

Homeowners unlock federal energy-efficiency rebates, influencing market trends.

The housing market stands on the verge of a significant transformation, driven by evolving sustainability trends that are reshaping buyer preferences and home construction standards. In fact, the 2023 National Association of REALTORS®’ Sustainability Report for the residential sector highlights the consistent demand for energy-efficient features, transcending the North-South or red-blue state divide.

Angi, the home improvement website, asked homeowners about their major investment plans for the next five years. While traditional projects such as bathroom remodeling and basement refinishing remain popular, the Angi survey showed a growing interest in new projects, such as heating and cooling system upgrades and the installation of solar panels. Notably, a ratio of 1 in 3 homeowners is considering solar panel installation, and 1 in 4 is planning a heating and cooling system upgrade.

New building codes aimed at enhancing energy efficiency and reducing household energy consumption have also had an impact on market transformation.

Between 2006 and 2015, newly constructed residential buildings saw a nearly 30% improvement in energy efficiency due to updated building code requirements, according to the U.S. Department of Energy’s Building Energy Codes Program. Since 2009, almost every state has updated its building codes, contributing to significant reduction in energy usage. (See energycodes.gov/infographics.)

Unlocking Funds for Sustainable Home Enhancements

The Inflation Reduction Act, passed in August 2022, is expected to greatly accelerate this market shift through its home energy rebate program. It heralds a new chapter in property ownership and investment practices. The act allocates a substantial $8.8 billion for programs encouraging homeowners to enhance the efficiency of their homes through two primary initiatives.

1. High-Efficiency Electric Home Rebate Act (HEEHR)

This program allocates $4.5 billion to individual states to help low- and moderate-income residents create energy-efficient homes, save on monthly utilities, and lower their carbon footprints. Through point-of-sale rebates on electrification appliances and equipment, the act offers 100% rebates (up to $14,000) on electrification projects for low-income households and 50% rebates (also to $14,000) for moderate-income households.

Some items included in these rebates are:

• Heat pump HVAC systems
• Heat pump water heaters
• Heat pump clothes dryers
• Electric stoves and cooktops

Also included are “enabling measures” for projects such as upgrading ventilation, circuit panels, air sealing, insulation and wiring.

2. Homeowner Managing Energy Savings Program (HOMES)

This program allocates $4.3 billion under HEEHR to individual states’ energy offices. Funds through the program are available to every household regardless of income; however, low- and moderate-income homes are eligible for higher rebates. Also, like HEEHR, this allocation is designed to provide rebates to help Americans create more energy-efficient homes—but that’s where the similarities stop.

Unlike HEEHR, HOMES doesn’t provide point-of-sale rebates on equipment purchases. Instead, it offers rebates based on modeled or actual home performance. There are two paths for rebates through the HOMES program.

First, the modeled-performance pathway calculates rebates based on the projected ability of an improvement to increase a home’s energy efficiency compared to its historic usage.

Contractors or other program implementers will use energy modeling software to establish an initial baseline for a home’s energy consumption and to propose a new energy model depending on the type of retrofit the homeowners have undertaken and their home’s historical energy usage. How much of a rebate can homeowners expect from this model?

For low- and moderate-income homes:

• Retrofits that achieve energy system savings of at least 20% but less than 35% are eligible for the lesser of $4,000 or 80% of the project cost.
• Retrofits that achieve energy system savings of at least 35% are eligible for the lesser of $8,000 or 80% of the project cost.

For high-income homes:

• Retrofits that achieve energy system savings of at least 20% but less than 35% are eligible for the lesser of $2,000 or 50% of the project cost.
• Retrofits that achieve energy system savings of at least 35% are eligible for the lesser of $4,000 or 50% of the project cost.

It’s worth noting that projects that result in energy savings of less than 20% are not eligible for rebates, regardless of cost.

Alternatively, the measured-performance pathway provides rebates based on a home’s actual energy performance. These rebates require the use of an approved open-source measurement and verification software to measure and verify a home’s energy savings based on historical and future utility bills. Homeowners still get their rebate upfront, most likely through an aggregator, who is in turn paid once the savings are demonstrated.

For low- and moderate-income homes:

• Retrofits that achieve energy system savings of at least 15% are eligible for a rebate that’s based on the number of kilowatt hours saved.
• Rates will be set at the state level based on the energy usage of an “average home” in that state.
• Or, rebates may be issued for up to 80% of the project cost.

For high-income homes:

• Retrofits that achieve energy system savings of at least 15% are eligible for a rebate that’s based on the number of kilowatt hours saved.
• Rates will be set at the state level based on the energy usage of an “average home” in that state and will be lower than the rates for low- and moderate-income homes on a per kilowatt hour basis.
• Or, rebates may be issued for up to 50% of the project cost.

If the actual savings resulting from an improvement is less than 15%, the home-owners aren’t eligible for a rebate. Also, the bill itself does not specify that homeowners pursuing measured-performance rebates are automatically given the lesser of the amounts above, but it may be wise to operate under that assumption.

Clean Energy Tax Credit (Code 25D)

Also stemming from the 2022 Inflation Reduction Act is an array of tax credits designed to promote the use of clean and efficient energy sources by homeowners. (Visit energy.gov/eere/solar.) Fortunately, the credits are all much simpler to understand than the rebates available through HEEHR and HOMES.

Under Code 25D, between now and 2032, homeowners can qualify for a 30% tax credit on purchases of or expenditures related to qualified:

• Solar electricity generators
• Solar water heaters (if at least half of the energy used in the home comes from the sun)
• Fuel cells and battery storage with a capacity of at least three kilowatt hours
• Small wind energy generators
• Geothermal heat pumps that meet Energy Star requirements

Heads up to homeowners: Act sooner rather than later, because the credit begins to shrink starting in 2033. It drops to 26% that year and 22% the following year.

Energy-Efficient Home Improvement Tax Credits

Like the credits available via Code 25D, the credits offered through Code 25C are easy to understand and relatively easy to qualify for. Homeowners who make efficiency upgrades, such as better insulation and improved heating equipment, can claim a rebate of up to $1,200 or 30% of project costs on their annual tax returns.

Furthermore, homeowners who install heat pumps can claim up to $2,000, and another $600 is available for homeowners who make upgrades to their electrical panels. Lastly, homeowners who coordinate with their utility provider to conduct a home energy audit (sometimes called a “home energy assessment”) can claim an additional tax credit of $150.

In total, homeowners can claim up to $3,200 in energy-efficient home improvement tax credits each year.

EV Charging Station Tax Credit

Through the electric vehicle charging station tax credit (Code 30C), owners of alter- native fuel vehicles can claim a healthy tax credit when installing charging stations on their property. (Visit afdc.energy.gov to learn more.) Starting on Jan. 1, 2023, installing fueling equipment for alternative fuel vehicles—including natural gas, propane, hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel—began earning homeowners a tax credit of 30% of the cost of the installation project, or 6% of the project cost in the event that the property is subject to depreciation.

However, there are limitations. No matter what the cost of the installation is, home-owners can claim a maximum of $100,000 for each single item of property. Keep in mind that associated costs, like permitting and inspection fees, aren’t included in total expenses.

A charging cable that plugs into a 220-volt outlet doesn’t qualify as a charging station, according to the IRS. In other words, a charging station must be a permanent fixture at the location where the EV is charged. Additional qualifying language from IRS Form 8911 notes that to qualify for the credit, a charging station must meet the following conditions:

• The homeowner placed the refueling property in service during that tax year.
• The original use of the property began with the homeowner.
• The refueling property isn’t used predominantly outside the United States.
• If the refueling property isn’t for business or investment use, it must be installed on property used as your main home.
• Property placed in service after 2022 must be located in an eligible census tract.

Optimizing Savings With State and Local Incentives

Households stand to gain even more when they combine the rebates and tax credits availablethroughthe Inflation Reduction Act with rebates and incentives from state and utility programs. As of October 2023, DOE Home Energy Rebate guidance says the HOMES and HEEHR programs aren’t taxable and can be paired with the 25C Energy Efficient Home Improvement tax credit for certain upgrades. Although the Inflation Reduction Act doesn’t permit the simultaneous use of HOMES and HEEHR to finance a single upgrade, it does allow homeowners to combine these rebates across various federal funding sources, such as the Weatherization Assistance Program, a DOE program that focuses on retrofits for insulation, heating and cooling systems, and electrical appliances, with an emphasis on addressing the “whole home.” Each federal grant must be allocated exclusively for distinct and separable upgrades. For example, a household can’t get a rebate from the WAP and IRA for the same heat pump upgrade.

Accessing Funding Opportunities

Currently, states are in the process of finalizing their IRA rebate program designs, adhering to guidelines set by the DOE, which will review these program designs. Once approved, home-owners will be able to access rebates through state-identified channels, with program rollouts scheduled to commence this year and beyond.

States are required to submit a Market Transformation Plan to unlock 25% of the funding available to them. In their plans, states must describe how they will enable a market to recognize the value of homes that have been upgraded through the home energy rebates, including at time of sale or rental. This piece has major implications for the real estate community as green homes have the potential to influence and attract a growing set of buyers and their agents.

National Association of REALTORS®

Reprinted with permission