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New Report: Homestar homes save Kiwis thousands and could take two years off mortgage

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A new report from leading economics consultancy Infometrics shows building better homes could save New Zealanders tens of thousands in energy bills and mortgage costs.

The report, commissioned by the New Zealand Green Building Council (NZGBC) and released today (Wednesday 7 May) at their annual Housing Summit, reveals homes built to a 6 Homestar standard can save New Zealand homeowners over $62,000 in electricity and mortgage interest over 30 years — the equivalent of helping them become mortgage-free two years earlier.Download the full report

The report, Analysis of Financial Benefits of Homestar, shows despite a modest upfront increase of just 0.5% to 1.5% of average building costs, Homestar homeowners can save $6,800 in interest in just five years thanks to discounted mortgage rates such as ANZ’s Healthy Home Loan package. These discounts, which amount to an effective 0.25% discount off widely available mortgage rates, save households over $40,000 across a typical 30-year loan.

Add in lower power bills — up to $1,500 a year by 2050 — and the savings stack up fast. Electricity and interest savings combined range from $62,800 for a terraced house in Auckland up to $98,800 for a standalone house in Wellington over the life of the loan.  

“Our analysis shows that Homestar homes are not only better for the environment — they’re better for your wallet,” says Brad Olsen, Chief Executive and Principal Economist at Infometrics.

“Although there’s a small additional upfront cost, homeowners can expect to pay that investment off in just two to three years through lower interest and energy bills, and then generate savings compared to having a non-Homestar house.”

The findings come as New Zealanders face rising living costs, high winter energy bills, and growing concern about climate change. A recent Kantar survey found that 75% of Kiwis are worried about the cost of living, while 52% are concerned about climate change.

“This report confirms what we’ve long known; building better homes is a win for healthier New Zealanders, the planet, and now, are clearly more affordable in the long run,” says Andrew Eagles, NZGBC Chief Executive.

“With the right support from banks and government, we can make these homes the norm, not the exception.”

The report also highlights benefits for developers and landlords, with discounted development finance available and the potential for higher tenant demand due to better indoor air quality and lower energy bills.

Despite the clear advantages, the availability of sustainability-linked mortgages remains limited. The NZGBC is calling for more banks to support homeowners with sustainability-linked mortgage offers.

“There’s a huge opportunity to accelerate the transition to healthier, more efficient homes. We’ve got the tools, we’ve got the data — now we need the will,” says Andrew Eagles. “Let’s build homes that work for people and the planet.”

The report was proudly sponsored by Cotality - previously CoreLogic, OneRoof, and Squirrel.              

 

ENDS

 Note to editors

About Infometrics

Infometrics is one of New Zealand’s leading independent economics consultancies, with more than 40 years experience analysing and commented on the New Zealand economy. We put economics simply, to help decision makers and the public make better informed decisions. We are independent, trusted advisors on how the New Zealand economy is performing, with particular expertise in understanding the macro-economy, local economies, sectors, the construction industry, demographic projections, climate change policy, and the supply and demand for skills.

About New Zealand Green Building Council

The New Zealand Green Building Council (NZGBC) is a not-for-profit organisation driving the transformation of Aotearoa’s built environment. Representing over 700 members, we advocate for sustainable, low-carbon buildings and run trusted building certifications like Green Star and Homestar, supporting industry to create healthier, greener homes and buildings for all New Zealanders.

About Homestar

Homestar is New Zealand’s leading independent rating tool for assessing the health, efficiency, and sustainability of homes. New homes can be awarded a rating from 6 to 10 stars, with 6 stars indicating performance above the minimum Building Code, and 10 stars representing world-leading design and construction. Homestar sets higher benchmarks for things like energy and water efficiency, ventilation, and materials, and includes things not covered by the Code such as overheating, emissions, and resilience, helping create warmer, drier, and more sustainable homes for Kiwis.