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The best cities for energy conscious home buyers
Where are the best places for energy efficient housing in Australia, the UK and the US?
As energy prices remain a key concern and more households prioritise sustainability, picking an eco-friendly home has become just as important as choosing the right property and location. To find out more, a new study by energy comparison service iSelect reveals where buyers can find the strongest mix of energy efficient homes, lower running costs and future-ready development, identifying the best places to buy eco homes across the UK, US and Australia.
By analysing a range of factors, including renewable energy adoption, housing efficiency, and energy costs by location, the index highlights the most attractive sustainable housing locations for modern buyers. The results point to clear leaders in each country, where strong development pipelines and access to renewable energy homes are helping shape the future of housing.
The eco-conscious home buyer index ranks locations based on how attractive they are to energy-conscious buyers, considering factors such as housing efficiency, renewable energy adoption, the sustainability of new-build homes, and household electricity costs. Each country is ranked separately using comparable indicators, with scores normalised and combined into an overall index out of 100.
The study covers US states, Australian states and territories and UK regions and local authorities in England, highlighting where buyers may benefit from stronger sustainability credentials and better long-term value.
With this in mind, let’s take a look at the best places for energy efficient housing in Australia, the UK and the US.
The top locations for eco-conscious home buyers
The highest-ranking locations in each country combine strong efficiency, high levels of renewable energy adoption, and consistent housing development, making them stand out to eco-conscious buyers.
Energy efficient housing in the US
Texas takes the top spot overall with a score of 63.4 out of 100, driven by its exceptional level of development. More than 200,000 new homes were approved in the past year, far surpassing any other state, and the state has an energy affordability score of 0.864. While its renewable electricity share sits at 29.4%, its scale and cost balance make it a standout for buyers seeking energy efficient housing in the US.
Washington ranks second with a score of 60.5, offering a strong combination of sustainability and efficiency. Renewable electricity accounts for 69.5% of the supply, while average household energy use is relatively low at 110.7 million BTU. Electricity prices of 14.12 cents per kWh further support its high affordability score of 0.939.
South Dakota completes the top three with a score of 56.6, underpinned by an impressive renewable electricity share of 81.6%. With electricity priced at 14.15 cents per kWh and an affordability score of 0.938, it offers a compelling option for buyers prioritising cleaner energy.
Energy efficient housing in Australia
Victoria leads the Australian rankings with a score of 73.4 out of 100, combining a solid average home energy rating of 6.81 with more than 54,700 new homes approved in the last year. With renewable electricity making up 40.5% of the supply and average annual bills of $1,571 AUD, it offers a well-rounded proposition for those seeking energy efficient housing in Australia.
New South Wales follows closely with a score of 72.5 and the highest average home energy rating among the top performers at 7.12. The state has also approved more than 50,000 new homes, highlighting a strong pipeline of modern and efficient housing.
Queensland ranks third with a score of 52.3, supported by nearly 41,000 new homes approved and a renewable electricity share of 28.6%. Its consistent performance across efficiency and development makes it one of the more accessible sustainable housing locations in Australia.
Energy efficient housing in the UK
The South East tops the UK rankings with a score of 83.4 out of 100, driven by more than 23,000 new homes started in 2024/25 and a strong housing efficiency score of 0.876. Renewable installations are also significant, at 652.79 per 10,000 households, reinforcing its position as a leader in energy efficient housing in the UK.
The Eastern region ranks second with a score of 72.0, boasting an even higher rate of renewable installations at 749.01 per 10,000 households. Combined with over 17,000 new homes started in 2024/25, it reflects a strong commitment to sustainable development.
The East Midlands comes third with a score of 63.6, supported by more than 13,400 new homes started and a renewable installation rate of 705.83 per 10,000 households, offering a consistent balance of growth and efficiency.
England local authority highlights
At a more local level, the data shows that areas with strong development pipelines and higher renewable installation rates tend to outperform. Locations with greater volumes of new housing construction are more likely to deliver modern, efficient properties, while those with higher adoption of renewables offer better long-term sustainability benefits.
What makes a location energy-friendly?
Several key factors determine whether a location stands out for energy-conscious buyers, from the quality of housing stock to the accessibility of renewable energy.
Energy-efficient housing
High-performing regions typically show stronger housing efficiency scores, reflecting better insulation, modern building standards and improved energy performance. These areas provide greater access to energy efficient homes, helping to reduce both emissions and household energy use over time.
New-build activity
Development plays a crucial role in shaping housing quality. States like Texas, with over 200,000 new homes approved, and regions like the South East in the UK, with more than 23,000 new starts, demonstrate how strong development contributes to the sustainability of new-build homes.
Renewable energy adoption
Access to clean energy is another defining factor. Washington’s 69.5% share of renewable electricity and South Dakota’s 81.6% highlight how widespread adoption of eco-friendly systems supports the growth of renewable energy homes.
Energy affordability
Affordability remains a key consideration for buyers. Regions with lower electricity prices and higher affordability scores, such as Washington at 14.12 cents per kWh and South Dakota at 14.15 cents per kWh, illustrate how local energy costs can significantly influence long-term value.
Key trends in sustainable home buying
The study reveals several consistent patterns shaping how and where people choose to buy homes.
Growth of new-build eco housing
Across all three countries, there’s a clear link between higher rankings and strong levels of housing development. Large-scale approvals in Texas and significant new-build activity in the UK and Australia suggest that newer housing stock is central to the rise of energy efficient homes.
Regional renewable disparities
The data also highlights stark differences in renewable energy adoption. While some regions, such as South Dakota and the Eastern UK, show high levels of renewable integration, others lag, affecting their overall sustainability performance.
Cost vs sustainability trade-offs
In some areas, lower energy costs don’t always align with higher adoption of renewables. This creates a trade-off for buyers, who may need to balance affordability with long-term environmental benefits when choosing between the best places to buy eco homes.
Why energy efficiency matters when buying a home
Energy efficiency is becoming a central consideration for buyers, influencing both affordability and long-term value.1https://www.apimagazine.com.au/news/article/how-energy-efficiency-ratings-are-quietly-reshaping-property-values
Lower long-term costs
Homes with better efficiency ratings and access to renewable energy can significantly reduce energy bills over time. This makes energy efficient housing in the US, the UK and Australia increasingly attractive to cost-conscious buyers.
Environmental impact
Choosing a more efficient property also helps to lower carbon emissions, supporting broader sustainability goals. Areas with higher renewable adoption offer greater opportunities to live in genuinely greener homes.
Future-proofing homes
As regulations tighten and energy costs evolve, efficient properties are likely to hold their value better. Investing in homes located in forward-thinking, sustainable housing locations helps to ensure long-term resilience for both homeowners and the wider housing market.
“Ultimately, where you buy can have a lasting impact on both your energy bills and your environmental footprint. Understanding regional differences helps homeowners maximise efficiency and could reduce long-term electricity costs.
“Comparing energy providers and electricity plans is another important next step, allowing households to take advantage of competitive pricing and choose power options that better support both sustainability and possible savings on their energy bills.”
Julia Paszka
General Manager – Utilities at iSelect
Written by:
Sean Hardeman
Digital PR Advisor
0424 107 600
Sean, a Digital PR Advisor with a career spanning more than seven years, is an experienced writer with a strong understanding of insurance and utilities.
He holds a bachelor’s degree in Journalism and a master’s in Marketing and Digital Communications, and has a knack for turning complex topics into interesting, easy to understand articles and explainers.
About the data
The eco-conscious home buyer Index ranks locations based on how attractive they may be for energy-conscious home buyers. The index is designed to highlight places where buyers may benefit from more energy-efficient housing, stronger adoption of renewable energy, higher levels of new housing development, and, where available, lower household electricity costs.
The index was produced as a set of separate national rankings rather than one combined international league table. This approach was used because each country relies on different official datasets, different housing measurement systems, and different energy market structures.
The final study includes four rankings:
- U.S. states
- Australian states and territories
- UK regions
- England local authorities
Locations were only included where matching data was available across all factors used in that specific ranking.
Because different countries measure housing and energy performance differently, comparable proxy indicators were used where necessary. Each metric was normalised to a score between 0 and 1 within its own country-level ranking. The factor scores were then averaged equally and converted to a final score out of 100. Locations were ranked from highest to lowest.
Higher scores indicate locations with more favourable conditions for energy-conscious home buyers.
Geographic Coverage
The final rankings were built at the following geographic levels:
United States
The U.S. ranking covers the 50 states.
Australia
The Australia ranking covers the states and territories for which all required factors were available in the final dataset.
United Kingdom
Two UK-based rankings were produced:
- a regional ranking based on English regions
- a more granular England local authority ranking
A full UK local authority ranking was not produced because the housing-starts dataset used in the final study did not provide like-for-like local authority coverage across all UK nations. The English local authority ranking was included because the required datasets could be matched reliably at that level using ONS local authority codes.
UK electricity price data was reviewed but not included in the final UK rankings because a directly comparable regional/local dataset was not confirmed for use in the study.
Eco-conscious home buyer index factors
The index uses up to four measurable categories related to energy-efficient housing and household energy sustainability.
1. Energy efficiency of housing
This factor measures how energy efficient homes are within each location.
Different countries use different systems to measure residential energy performance, so the most comparable available indicator was used in each market.
UK
For the UK rankings, housing energy efficiency was based on residential energy efficiency scores from the Energy Performance of Buildings dataset published by the Office for National Statistics. The source data is available at MSOA level. These scores were mapped up to larger geographies for use in the final rankings:
- English regions for the UK regional ranking
- Local authorities for the England local authority ranking
- Higher average scores indicate more energy-efficient homes.
US
Because the United States does not use a national EPC-style housing rating system, energy efficiency was estimated using residential energy consumption per household.
State-level residential energy consumption data was sourced from the U.S. Energy Information Administration and divided by the number of households in each state.
Formula used:
- Residential energy consumption ÷ number of households
- Lower average residential energy use per household indicates better housing energy efficiency.
Australia
Australian housing energy efficiency was based on CSIRO’s Housing Energy Star rating data from the Australian Housing Data portal. Separate house and apartment ratings were combined into a dwelling-weighted average state/territory score.
Higher star ratings indicate more energy-efficient housing.
2. New-build housing activity
This factor measures how much new housing is being added or entering the development pipeline within each market.
New housing construction was included because newer homes are more likely to reflect modern building standards, insulation standards, and more efficient design.
US
The U.S. new-build factor was based on housing permits. State-level monthly permit series were sourced from Federal Reserve Economic Data (FRED), and the most recent 12 months of available data were summed to create a rolling annual total.
Higher permit totals indicate stronger recent new-build activity.
UK
The UK new-build factor was based on housing starts from the UK Government’s house building statistics. “All Starts” was used as the primary measure because it reflects the number of homes entering development.
For the regional ranking, local authority starts were aggregated to English regions.
For the England local authority ranking, local authority starts were used directly where codes matched reliably across datasets.
Higher numbers of housing units indicate stronger new-build activity.
Australia
The Australia new-build factor was based on ABS Building Approvals data. The final measure used was the trend series for total dwelling units approved, summed across the latest 12 monthly releases to create a rolling annual total.
Higher approval totals indicate stronger new-build activity.
3. Renewable energy adoption
This factor measures the strength of renewable energy use or presence in each location.
US
The U.S. renewables factor was based on the share of electricity generation coming from renewable sources by state.
Higher renewable generation share contributes positively to the index.
Australia
The Australian renewables factor was based on state energy mix shares. A combined renewable share was created by summing:
- hydro
- other renewables
Higher total renewable share contributes positively to the index.
UK
The UK renewables factor was based on renewable installation counts from the supplied local authority renewables dataset. Because the source included estimated household counts, renewable activity was scaled as:
Renewable installations ÷ households × 10,000
This produced a measure of renewable installations per 10,000 households.
For the regional ranking, local authority values were aggregated to the English regions.
For the England local authority ranking, the local authority-level values were used directly.
Higher renewable installations per 10,000 households contribute positively to the index.
4. Household energy costs
This factor measures residential electricity affordability.
Lower energy costs contribute positively to the index because they reduce the ongoing cost burden on households.
US
The U.S. energy cost factor was based on average residential electricity prices by state, measured in cents per kWh.
Lower electricity prices contribute positively to the index.
Australia
The Australian energy cost factor was based on average yearly household electricity bill estimates by state/territory.
Lower yearly household electricity bills contribute positively to the index.
UK
A comparable UK regional/local electricity price dataset was reviewed but was not included in the final analysis. As a result, the UK rankings were calculated using the three available factors only:
- housing energy efficiency
- new-build housing activity
- renewable energy adoption
Index Calculation
For each ranking:
- Data was collected for each available factor.
- Each metric was normalised to a 0 to 1 scale within that ranking.
- Directionality was applied consistently:
- higher housing efficiency = better
- higher new-build activity = better
- higher renewable adoption = better
- lower energy costs = better
- Factor scores were given equal weight.
- The average factor score was multiplied by 100 to create the final Eco-Conscious Home Buyer Index score.
This means:
- U.S. and Australia rankings use four equally weighted factors
- UK regional and England local rankings use three equally weighted factors, because energy price data was not included
- Higher final scores indicate locations with stronger overall conditions for energy-conscious home buyers.
Data Sources
Housing energy efficiency
- Office for National Statistics – Energy Efficiency of Housing in England and Wales
- U.S. Energy Information Administration – State Energy Data System
- World Population Review – Households by State
- Australian Housing Data Portal (CSIRO)
Housing construction / new-build activity
- Federal Reserve Economic Data – Housing permits by state
- UK Government – Live Tables on House Building
- Australian Bureau of Statistics – Building Approvals, Australia
Renewable energy adoption
- UK renewables dataset supplied for the study
- List of U.S. States by Renewable Electricity Production
- Australian energy mix data supplied for the study
Electricity pricing
- Electric Choice – Electricity Rates by State
- Australia electricity bill data supplied for the study, with missing territory values filled using comparable benchmark pricing references
- UK electricity pricing dataset not included in the final index
Additional sources:
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