Five ways passive houses set the standard for smart investors
As energy prices rise and renters become more discerning, property investors are under pressure to offer homes that are liveable, but also energy-efficient and affordable.
That’s particularly important given that most renters feel they can’t make those improvements themselves. According to the PropTrack Renter Reality Report 2025, more than half of renters say they feel energy efficiency is beyond their control, but they want more sustainable homes. In fact, 63% say it’s important that their next home be energy efficient.
A passive house could be just that. Built to deliver superior energy performance, passive homes use up to 90% less heating and cooling than standard homes.
But certified passive houses are still rare in Australia, with fewer than 100 completed to date. So, it seems unlikely that you will find one readily available on the market – not yet, at least.
Instead, investors should consider passive house principles as a benchmark – a gold standard that’s reshaping how energy-efficient homes are designed and delivered. Whether you’re buying new, renovating or working with a developer, targeting homes built to Passive House principles can help you stay ahead of market trends, attract quality tenants and future-proof your investment.
Here are five reasons Passive House principles should be on your radar as an investor:
1. You’ll stay ahead of changing regulations
New minimum energy standards for rental homes are already in place in the ACT and Victoria, with other states likely to follow. Passive house-level performance exceeds current codes. Investing in a home built to these standards now means avoiding costly retrofits later, and securing your rental income long term.
2. You’ll attract high-quality, long-term tenants
More Australians are renting for longer. The PropTrack report found that the number of renters with children has increased, and the share of renters aged 35–54 has grown to 39%, up from 34% two years ago.
These older renters are more likely to want a comfortable, cost-stable home for the long term. These tenants value comfort, stable costs and quality – all of which a home built to passive house principles delivers.
3. You’ll stand out in a tight rental market
With vacancy rates at record lows, competition for quality rentals is fierce. But renters aren’t just taking whatever they can get. According to PropTrack, 34% of renters would pay more for a home with smart energy features. And 1 in 4 say energy efficiency is now a deciding factor when choosing a rental, even in a tight market. Passive house standards mean a home with built-in energy performance that tenants can feel and value.
4. You’ll reduce long-term maintenance costs
Homes built to Passive House principles use quality materials, airtight construction and efficient systems. This can mean fewer breakdowns and lower upkeep. That’s good news for your bottom line, especially as appliance servicing and energy prices climb.
5. You’ll offer value at a time of financial stress
Nearly half of renters are currently experiencing financial hardship. By offering a home built to standards that reduce energy bills, you’re helping renters stay comfortable while easing the pressure on their household budget. It’s a way to support tenant wellbeing, which can lead to better relationships, longer leases and fewer arrears.
