Newer homes twice as energy efficient as older homes

• The typical home built in 2010 or later is twice as energy efficient compared to homes built before 2010
• The significant difference in energy efficiency can be attributed to changes in the National Construction Code (NCC) - no doubt topical given the Coalition's pledge last month to freeze the code.
• ACT is Australia's most energy efficient state, while Sydney and Hobart fail to make the list
• The region ofMolonglo in ACT nabbed the top spot as the nation's most energy efficient area, with the highest median star rating at 6.1

New analysis from CoreLogic shows that the typical home built in 2010 or later is twice as energy efficient compared to homes built before 2010.

The analysis, part of the new report 'Amped Up: How energy efficient are Australian homes?', uses metrics generated from CSIRO's RapidRate™ product and CoreLogic data inputs, to show that homes built after 2010 achieved an estimated median star rating of 5.9 out of 10, compared with a median of just 2.8 stars for homes built prior to 2010.

The best-performing areas are concentrated in regions with newly built housing, with certain areas showing median star ratings above 6 across all dwellings.

The ACT is over-represented on the national top 30 league table with the highest median star rating.

The region of Molonglo in ACT nabbed the top spot as the nation's most energy efficient area, with the highest median star rating at 6.1 - the only region nationally with median star rating of 6 or higher across all dwellings.

Sydney and Hobart were notably absent from the Top 30 list of highest median star ratings by SA3 sub-region as the only capitals not to appear, demonstrating the variability of construction nationally.

The role of the National Construction Code (NCC) in driving change

CoreLogic's Head of Banking & Finance Solutions Tom Coad said the report's findings demonstrate the importance of minimum standards in the National Construction Code*.

"The significant difference in energy efficiency between relatively modern homes and older homes can largely be attributed to changes in the National Construction Code (NCC) which has progressively placed more emphasis on energy efficiency requirements for newly built homes," he said.

Residential buildings make up 24% of overall electricity use and more than 10% of total carbon emissions in Australia.

"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."

"Policymakers should be incentivising the construction of energy efficient buildings, not slamming the breaks."

What gets measured gets done

CoreLogic's research director, Tim Lawless, added:

"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."

"Minimum energy efficiency standards for new builds will continue to be important in supporting Australia's greenhouse gas reduction targets, but there is likely to be increasing focus and incentives on established housing where most of Australia's housing stock was built prior to recent minimum standards."

"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. This is also the case in the United Kingdom and some Scandinavian countries."

Key findings

Across the broad regions of Australia, the median star rating for homes built prior to 2010 ranged from 2.3 in Hobart and Regional NT, to 3.6 in Regional Victoria.

In contrast, the lowest median star rating for homes built from 2010 or later was 5.3 in Sydney and Regional NSW and as high as 6.4 in Darwin.

Based on analysis of all homes (excluding apartments**):

• NSW: Sydney's Blacktown-North and Bringelly-Green Valley recorded the highest ratings for energy efficient homes, with both areas recording a median star rating of 5.2.

• Victoria: Nine regions across the country recorded a median star rating of 5.8, with six of these located in Victoria. This included the Surf Coast-Bellarine Peninsula in regional Victoria, with the suburbs of Armstrong Creek, Curlewis and Mount Duneed all recording a median star rating of 6 or higher.

• South Australia: Sub-regions of Adelaide also had a strong presence on the top 30 table, on par with Melbourne, featuring 5 regions. The Port Adelaide-East sub-region recorded the highest median star rating at 5.5.

• WA: In Perth, the highest ranking area was Serpentine-Jarrahdale with a median star rating of 5.8, followed by Armadale and Kwinana with a median of 5.

• NT: In Darwin, the highest median star rated region was Palmerston at 5.8.

• Tasmania: Despite Hobart recording one of the highest median star rating for newly built homes at 6.3, sub-regions of Hobart were well down the list based on analysis of all dwellings, with the highest star rating recorded at 2.6 across Hobart-North East. The relatively low star rating across regions of Hobart might be attributable to a larger portion of older housing stock (Tasmania has historically shown one of the lowest dwelling completion to population ratios), heritage restrictions and the heating demand from such a cold climate.

*The Nationwide House Energy Rating Scheme (NatHERS) provides reliable energy performance ratings for new homes and major renovations. The star ratings referenced in this report are estimatesof NatHERS ratings only.

**This analysis is of detached and semi-detached dwellings (including townhouses), however does not include apartments.

CoreLogic Australia