A recent report revealed the superior energy efficiency of modern homes, sparking debates on maintaining rigorous building standards to curb energy costs and environmental impact.
Homes constructed since 2010 have been proven to be markedly more energy-efficient than their older counterparts, thanks to the introduction of stricter standards in the National Construction Code.
According to CoreLogic, a leading property analytics firm, homes built after 2010 boast a median energy rating of 5.9 stars under the Nationwide House Energy Rating Scheme (NatHERS), significantly higher than the 2.8-star rating of pre-2010 houses.
The findings emerge amid a proposal by the coalition to freeze the National Construction Code for a decade, should they secure victory in the upcoming federal election, with opposition leader Peter Dutton arguing that stricter energy efficiency standards have added as much as $60,000 to the cost of a new home.
However, CoreLogic’s head of banking & finance solutions, Tom Coad, cast doubt on the coalition’s figures, citing alternative industry estimates that suggest a cost increase closer to $10,000.
Another report by the Australian Glass and Windows Association (AGWA) in September put that cost even lower with upgrades due to code changes coming out to just $4,492.
With residential buildings currently accounting for almost a quarter of Australia’s electricity consumption and over 10 per cent of the nation’s carbon emissions, Coad said politicians should be looking to crack down on construction standards instead of pressing pause.
“The Coalition’s recent push to pause the national construction code for 10 years flies in the face of Australia’s commitments to reduce carbon emissions,” he said.
“Policymakers should be incentivising the construction of energy-efficient buildings, not slamming the brakes.”
Falling behind global standards
Even if the emissions standards do significantly add to the cost of new builds, it’s a cost the government should be supporting if the country is to have any hope of catching up with global benchmarks in the EU, said research director Tim Lawless.
“What gets measured gets done. As standards for energy-efficient design and construction rise, it’s also becoming more important to measure energy resilience in our housing stock,” he said.
“Many European countries are well advanced in their data collection and analysis of energy efficiency data, with the European Union mandating an Energy Performance Certificate (EPC) must be obtained when homes are built, sold or rented.”
Lawless also highlighted that while minimum energy standards for new homes are vital, there is a growing need to address energy efficiency in older housing stock, which constitutes a significant portion of Australia’s residences.
A 2023 analysis by Master Builders Australia estimated the proportion of homes that were 30 or more years old now made up over 55 per cent – about 6 million properties – of the nation’s housing stock.
Canberra leads the charge
The report did reveal some unsurprising regional variations in energy efficiency, with suburbs featuring newer housing developments performing better than older areas.
The ACT led the way, with Molonglo in Canberra’s west achieving a median energy rating of 6.1 stars, the highest in the nation.
In contrast, cities like Sydney and Hobart, which have older housing stocks, failed to feature among the top 30 regions for energy efficiency, with factors like heritage restrictions, low housing completion rates, and higher heating demands contributing to the lower rankings.
However, CoreLogic’s analysis did only focus on detached houses and townhouses, excluding apartments and retrofit upgrades to existing homes.
