The risk of defaulting on a mortgage is 32% lower for homeowners who live in energy-efficient properties, according to a new study by the University of North Carolina - Center for Community Capital, and funded by the Institute for Market Transformation.
The study, "Home Energy Efficiency and Mortgage Risks," is the first to try to quantify the connection between a home’s energy efficiency and its default risk, and was reported by The Atlantic Cities.
The study looked at a national sample of about 71,000 Energy Star and non-Energy Star-rated single-family home mortgages and examined loan performance data obtained from CoreLogic, a financial data provider. It controlled for the size and age of the house, neighborhood income, house value relative to the area’s median value, local unemployment rate, borrower credit score, loan-to-value ratio, loan type and price of electricity. The findings were consistent across several home model specifications.
Interestingly, the report also found thatRead More »from Energy-Efficient Homes Less Likely to Default, Study Says