Realtor.com® and Cox Automotive Identify the Top Electric Vehicle Friendly Housing Markets
- 1.2 million U.S. vehicle buyers chose electric vehicles in 2023, driving demand for EV-friendly housing markets.
- Top markets like San Jose, Salt Lake City, and San Francisco were identified based on accessibility to charging facilities and EV-friendly homes.
- San Jose leads with a 4.9% share of EV-friendly listings, reflecting the growing importance of at-home charging options.
- EV-friendly homes are becoming crucial in the electrification of the auto market, showcasing a positive correlation between housing market trends and EV adoption.
- None.
Insights
The integration of electric vehicle (EV) infrastructure into real estate listings is a trend that reflects the evolving consumer preferences and the shift towards sustainability in the housing market. The report indicating a rise in EV-friendly home listings is a positive signal for the real estate industry, as it aligns with the growing EV ownership trend. This could potentially lead to a higher demand for such properties, influencing real estate prices and attractiveness in the markets highlighted.
From a market research perspective, the correlation between the availability of EV-friendly features in homes and the density of electric vehicles in the area can be seen as a market differentiator. This differentiation may appeal to a segment of the population that is environmentally conscious and technologically inclined. The data suggests that markets with a higher percentage of EV-friendly listings could see an increase in property values over time, as they cater to the needs of this growing demographic.
Moreover, the report's indication of a congestion index, which assesses the ratio of EVs to public charging ports, offers insight into the potential for market growth in EV infrastructure. Areas with higher congestion may prompt investments in home charging solutions, further driving the demand for EV-friendly homes. The long-term impact on the housing market could be significant as it may influence urban planning and development strategies to incorporate EV charging capabilities as a standard feature in new construction.
The data on EV-friendly housing markets can be interpreted as an economic indicator of consumer behavior and real estate market trends. The rise in the share of homes marketed as EV-friendly from 0.1% to 0.9% over five years is a noteworthy change, reflecting a broader societal shift towards electric vehicle adoption. This trend is likely to continue as environmental concerns and technological advancements make EVs more accessible and desirable.
The economic implications are multifaceted. For instance, there could be an increase in home values in areas with a high concentration of EV-friendly listings, potentially leading to a wealth effect for homeowners in these regions. However, this could also raise affordability concerns for potential buyers if the prices outpace wage growth. Additionally, the need for more public and private charging infrastructure could drive local economic development and job creation in these markets.
Furthermore, the variation in EV adoption rates across different markets suggests that there could be disparities in economic benefits. Markets with higher adoption rates may attract more investment and innovation in related industries, creating a positive feedback loop that reinforces their attractiveness to EV owners and tech-savvy consumers. Conversely, markets lagging in adoption may miss out on these potential economic gains, highlighting the importance of supportive policies and incentives to encourage EV-friendly developments.
The intersection of EV adoption and housing is an emerging niche in the real estate market that developers and investors should monitor closely. The report's findings on the top EV-friendly housing markets provide actionable insights for developers considering the integration of EV charging infrastructure into new projects. The presence of EV-friendly features in a listing is becoming a selling point that can differentiate a property in a competitive market.
Real estate developers could leverage this trend by incorporating EV charging stations in the design phase of residential projects, potentially increasing the appeal and value of their developments. The focus on EV-friendly amenities may also attract a particular demographic that is tech-oriented and values sustainability, potentially leading to a faster sales cycle for new homes.
In terms of investment, properties in the highlighted markets may offer a higher return on investment due to the increased demand for EV-friendly features. The long-term benefits could include not only higher resale values but also enhanced rental yields for properties that cater to the needs of EV owners. However, developers must balance these potential benefits with the upfront costs of installing EV infrastructure and consider the long-term maintenance implications.
"A mix of accessibility to charging facilities and a high share of EV-friendly homes listed on Realtor.com® made these places the most EV-friendly housing markets," said Danielle Hale, Chief Economist of Realtor.com®. "The data shows that home sellers are very aware of the trend toward electrification. Mirroring the rise in the number of electric vehicles, the share of homes marketing EV-friendly characteristics on Realtor.com® is growing over time. Similarly, rates of EV adoption vary by market, and rates of EV-friendly homes in different areas reflect this. As the number of EV owners grows, I expect to see more demand for at-home charging and EV friendly characteristics from both buyers and renters. Sellers and property managers who can meet this demand–which can be found in newer and older homes– will undoubtedly have an edge."
Top EV-Friendly Housing Markets
Rank | Top Markets | Share of EV-Friendly Listing | # EV per Public Charging Port |
1 | 4.9 % | 24 | |
2 | 1.6 % | 17 | |
3 | 3.8 % | 29 | |
4 | 1.3 % | 13 | |
5 | 3.3 % | 29 | |
6 | 1.7 % | 21 | |
7 | 2.0 % | 24 | |
8 | 3.1 % | 29 | |
9 | 1.6 % | 19 | |
10 | 1.6 % | 20 | |
11 | 2.6 % | 30 | |
12 | 1.9 % | 26 | |
13 | 1.3 % | 19 | |
14 | 2.9 % | 40 | |
15 | 2.6 % | 33 | |
16 | Urban | 2.1 % | 36 |
17 | 0.8 % | 13 | |
18 | 1.7 % | 32 | |
19 | 0.7 % | 14 | |
20 | 1.1 % | 28 |
The analysis of most EV-friendly housing markets looked at markets on Realtor.com® with a great combination of EV-friendly listings and congestion index, measured as the ratio of EVs and Plug-In Hybrids (PHEVs) to public charging ports to uncover the best housing markets for electrified-vehicle owners.
The Rise in EV ownership Means More Demand EV-Friendly Homes
As EV ownership grows, so does the share of home listings being described as EV-friendly. In 2023,
In the number one EV-friendly housing market,
"We have found a clear and positive synergy between the housing market and EV adoption," remarked Jonathan Smoke, Chief Economist, Cox Automotive. "While we remain in the early innings in the electrification of the auto market with dramatic variation in adoption thus far, EV-friendly homes are proving to be key. Having access to a charger is fundamental to the ease of use for an EV, and when that charger is in a home it is both convenient and economical. This in turn makes EV-friendly homes stand out in markets with more EV owners."
Opportunity for EV-Friendly Home Growth
There's a growing demand for more EV-friendly homes to accommodate the increasing number of EV owners. Even in EV-friendly markets like
For more information on the top housing markets for EV owners and for a general snapshot of the state of EV ownership and home friendliness please visit https://www.realtor.com/research/electric-vehicles-2024/.
Methodology
Top EV-friendly markets were first determined by calculating percentile levels for 1) share of EV-friendly listings and 2) congestion index (EV per public port). Then a weighted average was taken between the two metrics to come up with an EV-friendly housing score for each market, forming the basis for market rankings. According to a study from the
About Realtor.com®
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
About Cox Automotive
Cox Automotive is the world's largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders and fleet owners. The company has 26,000+ employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™ and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned,
Media contact: press@realtor.com
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SOURCE realtor.com
FAQ
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