Let’s face it, the housing market will struggle as long as potential home buyers are concerned over job stability and the state of the economy. Mortgage rates may be low, and incentives like the first-time home buyer tax credit seem good on the surface, but the fact remains that until the economy gets on its feet, many are not willing to get into what they may consider a risky investment.

That’s where energy efficiency comes in. That’s right — green homes, sustainable energy, home improvements and renovations that are good for the environment — these things can actually improve the housing market (not to mention climate change). How so you ask? For starters, today’s buyer’s are more interested in homes that are energy efficient. A home with a lower utility bill is important when faced with uncertainty. Not to mention, buyers may be inclined to invest knowing there are tax breaks if they engage in green improvements in their new home. More indirectly, and perhaps more positively, energy efficiency creates green jobs, and that is just plain good for local economies.

The U.S. Conference of Mayors commissioned the “Green Jobs in U.S. Metro Areas” report, which documented the impact green jobs have had and can have on major U.S. cities. It only stands to reason that these same effects would be seen in smaller metro areas as well.

Some of the benefits to the economy cited in this study are:

• Improved tax rolls and sales as people gain stable employment in good green jobs.
• Carbon reductions that benefit city governments, homes and businesses in communities that concentrate on carbon reduction.
• Improvements to the balance of trade as we stop importing so much fossil fuel and start to export new energy efficient technologies.
• Improvement in the air and water quality surrounding communities that choose to reduce emissions and the impact that these savings have cumulatively on the earth by reducing the rate of climate change.

Some green home improvements include:

• Install solar powered water heaters and energy-efficient appliances
• Replace older heating and air conditioning units with high efficiency systems
• Use sustainable materials in new construction
• Replace insulation and tighten air ducts
• Seal windows, doors, fireplaces, and cracks in the exterior of the home

Learn more about creating a green home at The Green Home Guide.