Retrofitting old homes: Making the housing stock eco-friendly

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  Quantumrun Foresight
• December 17, 2021

Insight summary

Retrofitting old homes to make them more sustainable creates a market for servicing homeowners, generating new jobs in the installation and maintenance of eco-friendly home alterations. It can also influence architectural trends, ensuring that future homes and buildings prioritize sustainability. Furthermore, retrofitting drives advancements in the renewable energy sector, leading to more efficient technologies like solar panels and energy storage systems.

Retrofitting old homes context

Most housing stock can be up to several decades old, making maintenance difficult for an increasingly environment-friendly world. In addition, most older properties do not fit low-carbon, energy-efficient, and sustainable standards. For these reasons, retrofitting millions of old homes with modern technologies and designs that incorporate energy efficiency and sustainability is an essential tactic to reduce global carbon dioxide emissions. 

Canada and many other countries have committed to becoming carbon neutral by 2030, as per the Paris Climate Accord. Unfortunately, housing can be up to 20 percent of carbon emissions for some countries like Canada. Since new housing stock increases by under two percent per year, it’s impossible to reach carbon neutrality by simply building new eco-friendly homes. That’s why retrofitting old homes with environmentally sustainable alterations is essential to bringing down the carbon footprint of a country’s total housing stock. 

The UK aims to have zero net greenhouse gas emissions by 2050, which requires them to alter current infrastructure significantly. In 2019, the Committee on Climate Change described the 29 million houses in the UK as being unfit for the future. They further suggested that all homes must be carbon and energy-efficient to manage the impact of climate change appropriately. UK companies, like Engie, have already developed complete retrofit solutions for aging homes to fulfill a growing market demand.

Disruptive impact 

Installing high-efficiency furnaces, cellulose insulation, and solar panels are just a few examples of eco-friendly upgrades that can make a significant difference. As more homeowners become aware of the benefits of retrofitting, there is a growing market for "green homes." This trend presents an opportunity for companies and building developers to innovate and create new sustainable solutions for existing infrastructure, ranging from advanced energy-efficient technologies to eco-friendly building materials.

Governments play a crucial role in encouraging retrofitting by providing economic incentives like tax breaks, grants, or subsidies. Additionally, governments may implement labeling systems that assess and disclose the environmental impact of houses on the market to enable buyers to make informed decisions based on a property's sustainability features. Furthermore, as the awareness of environmental issues grows, financial institutions like banks might enforce stricter financing criteria. They may limit financing options for buyers interested in substandard properties that have not undergone retrofitting, incentivizing sellers to upgrade their homes to meet environmental standards.

Looking ahead, further research on the positive impacts of retrofit homes will be crucial. By quantifying the energy savings, reduced emissions, and improved indoor comfort resulting from retrofitting, homeowners can make more informed decisions when considering these upgrades. This research can also help governments fine-tune their incentive programs and regulations, ensuring they align with the most effective sustainability practices. Additionally, ongoing research can foster innovation and the development of new retrofitting technologies, allowing for continuous improvement in environmental performance.

Implications of retrofitting old homes

Wider implications of retrofitting old homes may include: 

• Market growth for servicing homeowners, creating new jobs to help owners install, maintain, and properly use eco-friendly home alterations. 
• Influencing broad architectural trends that will ensure all future homes and buildings are eco-friendly.
• Allowing governments to reach their Sustainable Development Goals by 2030.
• A sense of community and neighborhood pride as homeowners come together to discuss and share their sustainable initiatives, creating opportunities for knowledge exchange and social cohesion.
• Demand for skilled labor in construction, energy auditing, and renewable energy installation.
• Stricter building codes and regulations to promote energy efficiency and sustainability, encouraging a shift towards more environmentally conscious construction practices and reinforcing the commitment to combat climate change.
• Younger generations being attracted to older neighborhoods, revitalizing communities and preventing urban sprawl, as eco-friendly homes become more appealing to environmentally conscious individuals seeking sustainable living options.
• Advancements in the renewable energy sector, spurring the development of more efficient solar panels, energy storage systems, and smart home technologies.

Questions to consider

• Do you think retrofitting old homes is cost-efficient for an average environmentally-conscious homeowner? 
• Do you think governments should mandate retrofitting for older homes with more significant carbon footprints?