The Hidden Price Tag of a New Home

If you were shopping for a new home and came across two price tags: the first was the cost to buy the home, the second was the cost to operate it, would it impact your purchasing decision? Depending upon the efficiency of the home, it probably would. These operating price tags provide the information we need to protect ourselves from rising energy costs of the future.

This second price tag is essentially the premise of the EnerGuide for homes labelling system. “It’s the gas mileage for a house,” says Ryan Scott with Avalon Master Builder. “Consumers are becoming more aware of EnerGuide labels as they purchase new appliances and new vehicles, but there is less knowledge of it as it applies to houses.” The EnerGuide for homes rating scale indicates how energy efficient a house is on a scale from 0 to 100. A rating of 0 indicates a house has major leakages and no insulation while a house with a rating of 100 is producing as much energy as it consumes; it may even be producing more and selling to the grid.

 


The average home constructed today is probably at an EnerGuide ranking of 72.  Comparatively, a standard high-efficiency house would be rated at 80. To get to this higher standing, a house would have to have a strong building envelope which includes proper air sealing around windows and doors, and better insulation. Double-glazed, low emissivity (low-e) windows would be installed along with highly-efficient mechanical systems for hot water and heat. Typically heat recovery ventilators are used to provide regular fresh air exchanges. These improvements make living in a home much more comfortable. Cold drafts are eliminated and indoor air quality is vastly improved as pollutants are removed efficiently rather than through the leaks along windows. This is a big bonus for families suffering from asthma.

Of course all of these extras add to the overall cost of the house. And in an economic climate such as today’s, what homebuyer is looking to spend more than they need to? “It's really in the way it’s explained to the homebuyer,” says David Bengert with Jayman Master Builder.  An EnerGuide 80 home with Jayman costs approximately $8,000 to $10,000 more than a standard home. “If that extra cost is fully amortized as part of the mortgage, it would cost approximately $50 per month. However, at today’s gas rates, of say $6/GJ, and with these efficiencies in place, over the course of a year the homeowner could save about $80 to $90 per month in heating costs,” explains Bengert. “Buyers should know they have the potential to make money each month.”  An EnerGuide 80 house is 20 to 30 per cent more efficient than an average new home. And with 80 per cent of the cost to run our homes being attributable to heat and hot water, the efficiency shows up as a major discount to that second price tag.

Governments are moving toward establishing minimum levels of energy efficiency through the building code. Currently new homes are not required to be EnerGuide labelled. In order to receive a rating, a third-party home energy evaluation is performed and computer software determines a home’s standing. The Government of Alberta is now providing rebates to homebuyers who intentionally seek out new homes that are EnerGuide 80 or above. Click here for more details.

 



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