Why Water-Efficient Homes Are "The" Real Estate Trend of 2026

As water costs rise and shortages loom, smart home buyers are changing their purchasing criteria. Recent data from Realtor.com reveals a 290% increase in property listings that feature water-saving technology—but this trend is more than just saving water - it’s about security.

The rapid construction of AI data centers nationwide is projected to dramatically increase water consumption. This surge threatens to overwhelm local communities, resulting in potential water scarcity and spiking utility bills for residents.

So, is water efficiency – the long-term reduction in water consumption - the new standard for purchasing and to maintain a homes value? We explored this growing demand with Klaus Reichardt, CEO of Waterless Co., Inc. Having written about water efficiency for more than 35 years, Reichardt explains why buyers are clamoring for more water efficient homes.

Q: Klaus, could you first tell us a bit more about yourself and Waterless Co., Inc.?

A: I attended Pepperdine University in Southern California, where I observed firsthand California's dramatic water fluctuations—swinging unpredictably between severe droughts and floods. While these swings seemed random, the larger trend was clear: California was becoming progressively drier even as its population and industry were growing rapidly.

This contradiction made me realize we needed to either use water far more efficiently or eliminate water use entirely in certain applications. That's when I invented waterless urinals as a solution. Each waterless urinal saves approximately 35,000 gallons of water per year—and I believe few technologies can match this level of water reduction and efficiency.

Q: Are you surprised that homebuyers are placing much more emphasis on selecting water-efficient homes?

Not at all. This pattern echoes what happened during the 1970s oil crisis, when homeowners and commercial property owners first realized how energy-inefficient their buildings were. At the time, many homes—especially in the western United States—had minimal insulation. The prevailing attitude was simple: if it was hot, use more air conditioning; if it was cold, turn up the furnace. But as energy costs rose, this approach became unsustainable.

Just as buyers soon prioritized better-insulated homes to control energy costs, we now see a similar pattern with water efficiency—as water becomes scarcer and more expensive, homebuyers are seeking out residences that use less of it.

Q: You believe reducing costs and saving money is a key reason why homebuyers want more water-efficient homes?

A: Absolutely. This is basic economics: as demand for water increases or supply decreases, prices rise. We're already seeing this happen. With new pressures on water supplies—such as the massive water needs of AI data centers—combined with ongoing shortages in many regions, water costs are increasing dramatically. And this trend will only accelerate.

Homebuyers increasingly recognize that water-efficient homes can protect them from rising costs, making water efficiency both an environmental consideration and a smart financial decision.

Q: Are there other reasons why homeowners want more water-efficient homes?

Yes, though at the core are water efficiency and cost savings. Yet, there are other important drivers:

Sustainability: While not as dominant an issue as it was a few years ago, it remains a significant factor. Many people want to use water and other resources responsibly to ensure they remain available for future generations.

Lifestyle choice: Younger buyers especially prioritize reducing energy and water consumption, minimizing waste, and living more efficiently. These values are core to their identity and play a major role in their purchasing decisions.

Smart financial investment: Homebuyers increasingly view water- and energy-efficient homes as investments that will appreciate more strongly over time, protecting and increasing their home's future value.

Q: How is the surge in water-efficient fixtures in homes impacting your business?

A: For years, we witnessed slow but steady demand for waterless urinals in homes. But recently, that demand has increased far beyond our expectations. The installation of waterless urinals in homes has almost become a trend in itself—they've "caught on" among architects, home designers, and buyers.

Because they dramatically reduce water consumption, we're finding that homeowners are proud to showcase them as a feature of their homes. This is a significant shift. A decade ago, waterless urinals were still considered unconventional for residential use. Today, they're increasingly seen as a desirable, forward-thinking choice.

 

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