Building a Greener Future:

How Our Homes Impact Climate Change

Do Our Homes Impact the Environment?
The simple answer is yes. From the materials used to build RESIDENTIAL SITE ENERGY
and maintain our homes to the energy it takes to keep them CONSUMPTION BY END USE 4
running, our homes impact our environment. At Angi, we
want to take a deeper dive and explore the ways in which we
can help build toward a more sustainable future.

Understanding the environmental

impact of homes in America

In 2020, housing produced 15.6% of the nation’s total global

warming greenhouse gas emissions.1

How? It’s primarily because of the energy we use. Our homes

are heavily reliant on electricity for things like lighting,
heating, air conditioning, and operating appliances. The
remaining greenhouse gas emissions are largely due to
consumption of natural gas and petroleum products for
heating and cooking.

Taking a deeper dive into the energy usage of our homes, 45%
comes from space heating, another 18% from water heating,
and 9% from space cooling.2

Is there anything homeowners can do?

The answer is yes.

On the one hand, we want comfortable homes that provide us with a healthy indoor living environment and
pleasant year-round temperatures and humidity; enough living space for family, friends, and entertaining; and
modern luxury amenities like high-end spas in our bathrooms and gourmet chef tools in our kitchens.

On the other hand, the planet—our outdoor living environment—is also important. Breathable air, a pollution-free
ocean, and a reduction in global carbon emissions are all not only necessary to enjoying our lives but
requirements to ensure we pass a livable Earth on to future generations.

Thankfully, an amazing home where you love where you live and a sustainable
climate future can be complementary pursuits.

In fact, thanks to innovations in product manufacturing, building techniques, and

action by homeowners, we can make our homes “greener.”

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Solution 1: Building More Energy-Efficient Homes
The boom in home spending during the pandemic has brought new home construction back to highs not seen in
nearly 20 years.3

Homebuyers concerned about living more sustainably should know that homebuilders have been making steady
progress toward more energy-efficient homes. In fact, on a per-square-footage basis, homes built during the
previous building boom (in the early 2000s) used 14% less energy than the homes built during the preceding
decades and nearly half the energy (40%) of those built in the post-war building boom.4

This has been accomplished by

multiple improvements up and
down the supply chain, including
using recycled materials
as well as more efficient
transportation and shipping.
But most noticeably, it has been
accomplished by changing how
houses are built.

Specifically, builders have

adopted two main methods of
increasing efficiency over time:

1. Construction that reduces or eliminates thermal bridging in the walls, foundation, and ceiling, by adopting both
different design standards and different materials to frame.
Different materials include —
• Structural Insulated Panels (SIPS)
• Insulating Concrete Forms (ICFs)
• Insulated Studs or Double-Stud Walls
• Insulated Studs With Continuous Exterior Barrier Insulation

2. Airtight and thicker insulation and sealing of the wall system and vapor barrier.

In addition to these two methods, new homes are also more likely to have modern appliances, heating and cooling
systems, windowpanes, and other more efficient pieces of technology. These standards and improvements mean
that high-performance homebuilders have more options to pull from to meet modern building codes and a more
stringent design of their housing model to upgrade potential buyers to. A code is the minimum allowed by law,
and most high-performance homebuilders are working to build to ENERGY STAR, Indoor airPLUS, and Zero Energy
Ready Home standards from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy
(DOE). Over 3 million homes today are also Home Energy Rating System (HERS)-rated by a third-party energy
rater, ensuring buildings and homeowners meet the highest performance levels.

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However, keep in mind that we are also building homes larger, especially single-family homes. Homes built
between 2000 and 2005 are 29% larger than homes built in the 1980s and 38% larger than homes built before
19505. According to the DOE, “the oldest homes—which generally have less efficient systems and little or no
insulation—have the highest per-household energy consumption of all home vintages. Despite better building
practices and newer systems, the greater average floor space of new homes has offset their improved efficiency.”

ENERGY INTENSITY BY HOUSING VINTAGE 6 SHARE OF HOUSEHOLDS AND ENERGY

CONSUMPTION BY HOUSING VINTAGE 6

As impressive as most of these energy reductions are, new home construction is only a small part of the overall
housing landscape.

Solution 2: Improve Our Existing Homes

Existing older homes were built when energy was cheaper, the climate was not an immediately pressing concern,
and consumer expectations around draftiness and internal comfort within the home were not as demanding. New
home construction gets a significant amount of attention because of the level of economic activity it creates, but
it still only adds a tiny share of the total housing stock available to the country every year.

At our current booming home construction rate, it would still take 109 years to completely rebuild and
replace the entire national housing stock of 141 million housing units. That means both current and future
homeowners will be the ones responsible for helping make existing homes greener.

Homeowners should focus on these key projects for retrofits and renovations to reduce their home’s energy needs
and carbon footprints.

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1. Consider Insulation, Air Sealing, and Proper Ventilation

Arguably one of the most important

things homeowners can do to COMMON AIR LEAKS
become more energy efficient
Air Leaking into the house
is to make their home’s building
envelope stronger. What is that? A Air Leaking out of the house

home’s envelope is defined as the

continuous thermal and pressure
barrier that surrounds the structure.
Tightening your home’s building
envelope can improve energy
efficiency. To do this, homeowners
can add more and better-quality
insulation, improve air sealing, install
Energy Star-rated windows, and add
products to monitor and control
indoor air quality.

According to the DOE, 45% of

residential energy use is spent on
heating and 9% on cooling. With
over 50% of residential energy spent
on either heating or cooling, better
insulation is key to becoming
more efficient.

Where to start? Homeowners can start with an energy audit. Many utilities offer energy audit programs, which
include tests like a blower door test that uses equipment like thermal cameras to help make recommendations.

Insulation

Insulation can be added to walls, attic spaces, and the rim board of your home (that area of the floor trusses at
the basement ceiling). Insulation can keep your home cozy and warm on long winter nights or cool on hot sunny
days. According to Angi’s Insulation Cost Guide data, you can expect to pay between $1,500 and $10,000 for
all that energy-saving efficiency. Blown-in insulation costs $5,213 on average, which is a little less than batting,
fiberglass, and radiant barrier insulation. Spray foam insulation has the highest return on investment (ROI) but is
also the most expensive option.

Any home pro hired to add or update insulation will also seal any gaps in the wall and envelope at the same time.
This helps prevent thermal bridging and air leakage, where the walls and ceiling of your home act as an easy way
for your treated indoor air to get outside, wasting energy and running up your utility bills.

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Windows

New windows that meet Energy Star requirements for your climate zone are a great next step in helping make
your home more energy efficient. Energy-efficient windows generally cost between $120 and $1,200 per window,
according to Angi’s Window Cost Guide data. Quality, efficiency, and low e-coatings (also known as electrodepo-
sition coating), which are used as a protective primer, determine the cost. Installing energy-efficient windows can
save you between 7% and 15% annually in energy costs.

Consider replacing older single-pane windows with more energy-efficient double-pane or even triple-pane
windows. Not only can homeowners save money on their HVAC costs, many may be able to claim a tax credit for
windows and appliances that conserve energy. Homeowners should keep receipts and paperwork for proof when
claiming this credit come tax season.

When old windows are removed, your contractor can properly seal the area surrounding the window with an
airtight foam, thereby sealing one of the leakiest areas of your home’s envelope. Once you have eliminated
uncontrolled airflow into your home, it’s time to think about controlling and filtering the air for your family.

Healthy Indoor Air

Once you have a properly sealed home, it is time to look at your indoor air quality. Look at adding an Energy
Recovery Ventilator (ERV) to your home. This filters the outside air and captures energy from the exhausted
inside air to deliver healthy fresh air to the house.

Another option is to add air filtration units to your home. These are often whole-house units that are integrated
with the HVAC system or room units that are standalone. According to SOURCE, these filters should be high-ef-
ficiency particulate absorbing (HEPA)-level (MERV 16 in HVAC talk) to help remove the smallest pollutants from
the air.

And if you live in a damp, humid climate or a dry climate, consider adding humidification and dehumidification
units to the HVAC system to help keep your home healthy and comfortable. According to the EPA, indoor
relative humidity (RH) should be kept below 60%, ideally between 30% and 50% to help limit the growth of
harmful molds.

Finally, look at adding smart sensors to your home that track and monitor indoor air quality and alert you
of any issues.

Maintaining a healthy and comfortable year-round environment in your home means keeping your house cool in
the summer and warm in the winter, and heating and cooling are two of the most energy-intensive functions of
our homes. However, homeowners looking to make an impact can follow our advice and work to reduce the loss of
heat and air conditioning as a great first step toward a greener home.

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2. Opt for Better Heating and Cooling

At the turn of the last century, we heated our homes by burning

coal or wood. We have come a long way in terms of efficiency
for our homes. Modern baseboard heating and natural gas
systems have reduced the need to burn wood to heat most
homes, with the best gas appliances often having an efficiency
rating of 90% and heat pumps delivering a 300% to 400%
efficiency improvement.

Heat pump technology impressively heats and cools your home

without burning oil or gas. Heat pumps shouldn’t be a foreign
concept to homeowners. Our refrigerators and air conditioning
units currently use this efficient technology today. Think of it
this way: In the right conditions, a heat pump can replace both
your furnace and your AC. The average cost of a heat pump,
according to Angi Cost Guide data, is $5,700, depending on prices in your area, your current HVAC system,
and brand.

Heat pumps and ductless multi-split air conditioning systems provide zoned heating and air conditioning
without needing ductwork like central air and are not intrusive like window units. This can be beneficial for older
homes where installing new ductwork isn’t feasible. According to Angi Cost Guide data, you can expect to pay
$1,500 to $4,000 for a mini-split air conditioning unit itself, but expect the cost of labor and installation to
increase the price overall.

Another way to utilize this technology is with heat pump water heaters and heat pump dryers. Heat pump water
heaters provide efficient heating of water systems without the need to punch a hole in the home envelope for
intake and exhaust. As an added bonus, using this style of heater means there is no danger of emissions in the
home. Heat pump dryers also are highly efficient and have no need for exhaust or make up air in the home.

Heat pumps also have the potential for additional benefits, such as running a heat pump off of local electrical
energy-generation systems to avoid the inefficiency in electricity transmission while potentially creating healthier
indoor air quality in our homes.

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3. Install Solar Panels and Battery Storage

Solar panel installations are on the rise, with

there currently being over 2.7 million residential
photovoltaic systems currently installed in
the country.7 Along with the rise in solar panel
installations, homeowners across the U.S. are adding
battery storage to their homes.

Most solar panels cost between $17,000 and

$32,000. However, homeowners could save around
$600 a year on energy costs, allowing you to return
your investment over time. The cost to install
home solar panels can vary by thousands of dollars
depending on where you live. The biggest price differences fall between the Southeast and New England. However,
consider your local area and county, as some places may have a better ROI than others.

For homeowners who might be considering solar panels, many localities are not only allowing their use but actively
encouraging them with incentives like tax breaks. A great way to think about solar panels as an investment is to
replace your current electricity bill with a solar payment. If your electricity bill today is $200 per month, you may
be able to offset all or most of your bill by installing panels and paying for a solar system you own.

Battery storage may be one of the biggest changes coming to your home. There are options today that provide
enough energy to operate as whole-house generator systems and ones that integrate with electric vehicles. The
combination of solar with backup batteries and a smart inverter could allow homes to operate “off the grid” for
three to10 days in case of an outage, or allow homeowners to avoid peak rate charges from electrical utilities, even
helping the utility balance demand on the grid.

The average home in 2020 used an estimated 10,000 kilowatt-hours per year of electricity. Looking toward
the future, if more homes install solar panels and battery systems, they will be able to contribute clean energy,
improve air quality, and help lower carbon emissions while becoming more resilient to grid outage events.

4. Take on Many Small Projects for a Bigger Impact

In addition to the aforementioned projects, homeowners can take on a range of

smaller improvements to collectively make a difference.
These include:
•S
 witching to low-power LED lights
•A
 dding smart home devices like a smart thermostat and smart lighting to
reduce usage over time
•U
 sing materials that can be recycled and upcycled to prevent them from
ending up in a landfill at their end of life
•U
 pdating old appliances with Energy Star-rated appliances
•U
 pdating plumbing fixtures like toilets and showerheads for low-flow models
•X
 eriscaping exterior landscaping to native and drought-tolerant plants
•A
 dding weather monitoring to existing sprinkler systems

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There are also a number of behavioral changes that homeowners can make to help reduce energy consumption
and improve the overall sustainability of their homes.
•D
 o an energy audit to better understand your energy usage.
•R
 un your dishwasher,washer, and dryer during the night or non-peak energy hours.
•K
 eep your air conditioning on at a warmer temperature (higher than 72 degrees Fahrenheit)
during summer months and below 68 degrees Fahrenheit during winter months.
•T
 urn down your water heater or opt for lukewarm showers.

Small changes adopted by many homeowners across the country can make a big impact. From major things like
installing solar panels to generating your own energy to more minor changes like installing low-flow toilets and
smart thermostats, a green home is within every homeowner’s reach.

The Green Home Future

Homeowners do not have to choose between a comfortable home and a sustainable future for our planet. These
two goals are complementary.

Across the nation, building standards are constantly evolving and becoming more sustainably minded, including
innovations like reducing thermal bridging, continuous insulation, and using more efficient heating and cooling
systems. Because of the work of builders, home pros, and smart choices made by homeowners, we have been
driving down the energy usage on a per-square-foot basis continuously since the 1950s.

But because new home construction is only a small portion of the total existing housing stock, renovations
of existing property will allow us to bring our buildings up to speed, faster than the 109 years it would take to
completely replace all existing homes. In order to reverse the harmful changes to our environment, we must
update the 141 million existing homes in America.

Sustainable retrofits, upgrades, and renovations that can lead the way include adding residential solar panels and
batteries, switching or adding heat pumps to the heating and cooling mix, updating insulation and air sealing,
changing doors and windows, and making a suite of other small projects.

At Angi, we believe that the home is the most important place on earth. Alongside our new partner, EEBA Team
Zero, we share a vision that better homes today can deliver a better future tomorrow. We will continue to educate
homeowners and home service professionals to build toward that future.

Mischa Fisher
Chief Economist, Angi Inc.
[email protected]

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Sources
1
EPA. 2022. Draft Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2020. U.S. Environmental
Protection Agency, EPA 430-P-22-001. https://www.epa.gov/system/files/documents/2022-02/us-ghg-inventory-
2022-main-text.pdf.

2
2012, March. 2011 Buildings Energy Data Book, Chapter 2: Residential Sector. U.S. Department of Energy’s Office
of Energy Efficiency and Renewable Energy. http://192.31.135.76/ChapterIntro2.aspx

3
https://www.census.gov/construction/nrc/index.html

4
http://192.31.135.76/ChapterIntro2.aspx DOE EERE Buildings Data Energy Book, pg. 63.

5
http://192.31.135.76/ChapterIntro2.aspx

6
http://192.31.135.76/TableView.aspx?table=2.2.3, http://192.31.135.76/TableView.aspx?table=2.1.12

7
https://www.nrel.gov/docs/fy21osti/80427.pdf

Images: Getty Images, Angi, and Energy & Environmental Building Alliance by BPC Green Builders

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