With rising utility costs, climate uncertainty, and shifting consumer values, sustainability and energy efficiency are increasingly key considerations in Canada’s housing market. The 2025 Canada Mortgage and Housing Corporation (CMHC) Mortgage Consumer Survey findings highlight this trend, offering insights into just how strongly energy efficiency and environmental considerations are shaping homeownership decisions across the country.
Green Renovations: A Priority, Not a Perk
According to the survey, 28% of mortgage consumers renovated their homes within the past three years specifically to improve energy efficiency. Looking ahead, that number is expected to rise, with 30% or more of future renovation plans including energy-saving upgrades such as improved insulation, smart thermostats, high-efficiency HVAC systems, and upgraded windows and doors. These show property owners are looking beyond aesthetic choices towards strategic investments.
Homeowners also indicate they are seeing tangible benefits. Of those who completed energy-efficient renovations, 93% expressed satisfaction, and a notable 78% reported tangible savings on their energy bills. This suggests that sustainability is being recognized as a smart financial decision as well as an ethical one.
Renovation Spending Reflects Shifting Priorities
The financial commitment to sustainable living is also evident in renovation spending behaviour. The survey found that 63% of total renovation expenditures over the past three years went toward energy efficiency upgrades. By prioritizing green renovations, Canadians show how they define “value” in a home, not simply through aesthetics or square footage, but through long-term performance, comfort, and environmental impact.
Notably, this green momentum is consistent across different buyer profiles. First-time homebuyers, renewers, repeat buyers, and refinancers all reported sustainability as a growing influence in their renovation plans. While motivations vary, ranging from cutting energy costs to preparing for extreme weather, the underlying message is the same: Canadians want homes that are efficient, resilient, and future-ready.
Homebuying Decisions
Beyond renovations, sustainability and climate resilience are also impacting how people choose homes. Half of all homebuyers surveyed said that a home adapted to face the impacts of climate change was an important consideration, up from 44% in 2024. Similarly, 61% reported that energy-efficient features influenced their purchase decision, a significant jump from just 57% the previous year. This growing awareness highlights a broader cultural shift, as climate resilience and environmental responsibility are becoming part of everyday consumer behaviour.
Comparing 2025 to 2024: Clear Upward Trends
The 2025 results show these trends building from the previous year. In 2024, only 57% of homebuyers said energy efficiency was an important factor in their purchase decision. That figure rose to 61% in 2025. Similarly, the share of buyers who purchased a home already equipped with energy-efficient features increased sharply from 29% in 2024 to 47% in 2025, for an 18-point jump in just one year.
The importance of climate change adaptation also grew. In 2024, 44% of buyers said resilience to climate impacts was a key consideration. In 2025, that number rose to 51%, reflecting heightened awareness of extreme weather events and the long-term risks associated with aging housing stock.
When it comes to renovation motivations, energy efficiency rose slightly from 28% in 2024 to 30% in 2025, indicating steady year-over-year growth. Canadians are not just planning more upgrades, they are dedicating more of their renovation budgets to green improvements, with sustainability accounting for a majority of their total renovation spending.
Barriers and Opportunities for Property Owners and the Broader Industry
Despite this momentum, cost remains a key barrier; 37% of respondents said price was the primary reason they did not opt for more energy-efficient options. However, many are finding ways around it. Awareness is increasing around the ability to finance green upgrades through mortgage products or refinancing, and 63% of consumers know that renovation costs can be rolled into a mortgage, up from prior years.
The 2025 CMHC findings point to a shift in Canada’s housing landscape towards sustainability being a defining factor in market demand and value. For those in the real estate industry, this presents both a challenge and an opportunity to meet a growing appetite for green living with supply that’s not just compliant, but genuinely forward-thinking. The future of Canadian housing will increasingly be defined not just by what a home looks like, but by how it performs, what it saves, and who it serves.