A recent study shows homes with natural gas features are more desirable than homes without.
8 in 10 local homebuyers favor—and will pay more for—homes with natural gas heating and cooking.
Natural gas is preferred by many for several reasons: the consistent and efficient quality of its heat; the adjustable ease of its flame for cooking; and the comfort and convenience of amenities like gas fireplaces and gas grills. And according to a recent study conducted by Escalent, an independent human behavior and analytics firm, natural gas continues to be a much-sought-after feature that adds to a home’s equity and market value.
Results show homebuyers prioritize homes with natural gas
- 8 in 10 recent and prospective homebuyers recognize that natural gas is affordable, efficient, and preferable to electricity for heating and cooking, and feel natural gas service is an important feature when looking for their “ideal” single-family home.
- Those actively shopping for a new home are willing to pay more for natural gas: 82% of recent and prospective homebuyers surveyed said they would incur an additional cost of $50,000 (an 11% premium based on a mean home value of $456,300) for a home with natural gas heating and cooking, versus a lower-priced home with all electric heating and cooking.
- When presented with a choice between two otherwise identical single-family homes offered at the same selling price, 83% of recent and prospective homebuyers select the home with natural gas heating and cooking, versus a home with all-electric equipment.
Overall, the study showed that when committing to a home purchase, a significant majority of homebuyers will not compromise when it comes to having natural gas service, and see it as an attractive attribute that increases the value of a home.
About the independent study
At the request of NW Natural, Escalent conducted the independent study in 2020, February through April, and again in September, surveying recent and prospective homebuyers in Portland and Salem, Oregon, and Vancouver, Washington. The study focused on the value survey participants place on natural gas services and amenities.
A representative sample of 600 recent and prospective single-family homebuyers completed the survey. As part of the study, Escalent employed Discrete Choice Modeling, an approach used to describe, explain and predict consumer choices between two alternatives. Study participants were asked to assume they were looking for a new single-family home and needed to choose between two homes with various heating and cooking fuels and amenities.
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