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Purpose

The purpose of this paper is to examine current trends in energy efficiency ratings and consider their likely impact on the Australian housing market.

Design/methodology/approach

The research is yet to be conducted; however a mixed method is proposed which is grounded on the theoretical model of consumer behaviour within housing markets. This model has been tested and demonstrated to be useful in predicting buyer behaviour.

Findings

Established theories of buyer perception indicate the introduction of energy efficiency rating systems will have an effect on the level of house prices.

Research limitations/implications

This research is focussed on housing in Australia but also has implications for other global housing markets which are addressing sustainability.

Practical implications

Outputs of this research have implications for policy makers, real estate agents and valuers.

Social implications

Increasing energy costs is likely to restructure the way housing markets operate with regard to sustainability and energy efficiency rating systems and also how they are understood.

Originality/value

This research will be in the Australian context utilising international modeling. As mandatory energy efficiency ratings have not been introduced, this research will be original.

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