Do Renters Want Green Homes? Sustainability in the Short-Term Market

Sustainability carries considerable marketing weight for travelers. In a vacuum, short-term renters would choose green homes over environmentally damaging ones the majority of the time. In reality, even eco-warriors may intentionally book less energy- and water-efficient rentals for different reasons.

Does it make financial sense to invest in sustainable home improvements in the current state of the short-term rental market? Discover what the numbers say about sustainable tourism and how you can recoup your expenses beyond collecting rents.

3 Stats That Reveal the Realities of Sustainable Tourism

The latest figures indicate a persistent disconnect between aspiration and action.

1. Over 9 in 10 Global Travelers Want to Make Sustainable Choices

According to Booking.com’s 2025 Travel & Sustainability Report, 93% of 32,000 global travelers from 34 countries and territories want to make more eco-friendly decisions when going on a trip — some of them have already done so.

Environmentally conscious tourists prioritize reducing waste and being mindful of their energy consumption. Vacationers also consciously consider ways to minimize their negative impact on the destinations they visit. Exploring alternative attractions and researching other times of year to travel to avoid overcrowding, which has become a trigger point for anti-tourism protests in Europe.

Heightened awareness of tourism's impact on local communities and increased intent to adopt sustainable practices are good news for owners and managers of green homes for rent. Rentals that run on renewable energy, conserve water and maintain healthy indoor air quality levels can stand above the rest when appropriately marketed.

2. About 60% Consider Cost as the Main Factor When Booking

Most travelers care about sustainability, but only some consider it a top priority when booking travel.

The Vacationer’s 2025 Summer Travel Survey found that 59.78% of 1,017 American adults share that they think about cost the most when selecting a rental, while the other 35.59% say that they make booking decisions mainly based on time and convenience. Just 4.62% of surveyed respondents consider sustainability and carbon footprint more important than anything else.

These figures should remind you to strike a healthy balance between sustainability and competitive pricing.

3. 21% of Travelers Are Willing to Pay a Premium

The most passionate vacationers about sustainability understand that environmentally conscious options cost more, but their willingness to pay extra dwindles as costs spike.

The 2024 Sustainable Travel Consumer Report by Trip.com Group says that slightly over one-fifth of 9,867 travelers from 109 countries and territories consider spending up to 5% more for sustainable travel reasonable. However, just 4.7% of them think it’s acceptable to pay 10% to 20% extra, and merely 1.7% don’t mind paying anything more than 20%.

This report proves that rentals with green credentials can command higher fees than those without. However, inflating the rent by over 10% would likely deter the majority of environmentally conscious travelers.

The ROI Duality of Green Homes

Converting rentals into green homes through strategic improvements can be a costly endeavor, so the motivation to charge guests higher fees is strong. However, solely relying on renters to recover your initial expenses can be a losing formula. Instead, recognize the reduction in your operating costs by going green to calculate returns more accurately.

For example, when investing in a solar roofing system, calculate your potential energy savings along with the project’s corresponding government incentives and tax credits to determine your net job expense. By knowing how much the improvement truly costs, you can identify your break-even point and establish a realistic timeline to reach it without pricing out potential renters.

If cash flow is less of a concern, factor in the project's effects on your green home’s value and capital gains tax liability at resale. A more precise understanding of the improvement’s impact on your net worth may reduce the pressure to overcharge short-term renters.

Sustainability-Minded Renters Want Reasonably Priced Green Homes

Retrofitting green features to your rental properties is a surefire way to stand out from the competition and justify higher fees. If you price your rentals properly, you should experience fewer vacancies.

Evelyn Long is a writer that specializes in housing market trends. She is also the editor-in-chief of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other publications like the National Association of Realtors and Realty Executives.