Which Water Efficiency Rating System Works for You?

Green Certifications
Published

Certifying your project to an above-code, voluntary water efficiency rating system provides independent confirmation of the water-saving practices you have installed in your projects, and validates to your buyer and the local market that you have built a house to a higher standard than what code requires. The What Home Buyers Really Want, 2019 Edition found that more than half of buyers are willing to pay at least $500 for a water efficiency certification, providing an opportunity to stand out in your market.

Water efficient residential design may already be part of your business model; the 2020 Green SmartMarket Brief found that 67% of all single-family builders are using water efficiency practices on at least some of their projects, while 36% are using them on at least 75% of their projects.

Examples of how builders are incorporating these practices include water-conserving fixtures — such as high-efficiency toilets, faucets and showerheads — that were rated as essential or desirable by more than half of the What Home Buyers Really Want respondents. Or it may be something they are incorporating into designs to respond to changing conditions in their market — such as long-term droughts, limited infrastructure or water quality issues — so that they can continue to build.

Which rating system is the best for you as you explore ways to differentiate yourself in the market? This matrix tool — one of many NAHB Green Resources available to all builders and developers — allows you to quickly evaluate and compare the features and requirements of several above-code water efficiency and conservation programs to assist in your decision-making.

The matrix provides information on applicability, requirements, costs and scope for several programs:

  • NGBS: The ICC 700-National Green Building Standard® (NGBS) has long recognized and rewarded builders’ efforts to implement water conservation and efficiency practices. New to the 2020 edition is a performance path index that provides a score based on the expected water use (indoor, outdoor and reuse) of the home.
  • WaterSense: EPA’s WaterSense program, founded in 2006, provides a voluntary path for home certification using certified high-efficiency products. WaterSense has high brand recognition — 21% of those surveyed in the What Home Buyers Really Want, 2019 Edition, were familiar with the program.
  • WERS: The Water Efficiency Rating Score (WERS) originated in the Southwest, where water scarcity threatens to limit residential building in some jurisdictions. Outdoor water use is generally a higher percentage of overall use in this region. Efficient outdoor use and water reuse are recognized in the program along with indoor use.
  • HERSH2O: RESNET recently has launched HERSH2O, a water efficiency program that complements its HERS Index Score for energy efficiency and provides a relative efficiency of the home as compared to a baseline.

To stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS

Feb 19, 2026

NAHB Honors the Industry’s Top Achievements at The Nationals

The National Association of Home Builders (NAHB) honored top achievements in residential real estate sales, marketing, individual achievement and global excellence at The Nationalsâ„  Awards Gala (sponsored by Chase) during the NAHB International Builders’ Show in Orlando. Awards were also presented for the 55+ housing, NAHB Honors and Global Innovation award categories.

Economics

Feb 18, 2026

Impact of Affordability Challenges and Demographic Shifts on Housing Trends in 2026

Housing affordability has declined significantly in recent years. The deterioration in price-to-income ratio has been a key factor, as home prices have risen 53% since 2019, while median household income has risen only 24%. This has notably decreased the share of first-time home buyers in the market, which dropped to 21% in 2025 from 44% in 1981. Over that same time frame, the median age for first-time buyers reached a record high of 40 in 2025 from 29 in 1981.

View all

Latest Economic News

Economics

Feb 18, 2026

Overall Housing Starts Inch Lower in 2025

Despite a strong finish in December, single-family home building dipped in 2025 as persistent affordability challenges continued to weigh on the market.

Economics

Feb 18, 2026

How Housing Affordability Conditions Vary Across States and Metro Areas

The NAHB 2026 priced-out estimates show that the housing affordability challenge is widespread across the country. In 39 states and the District of Columbia, over 65% of households are priced out of the median-priced new home market. This indicates a significant disconnect between higher new home prices, elevated mortgage rates, and household incomes.

Economics

Feb 17, 2026

Builder Sentiment Edges Lower on Affordability Concerns

Builder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).