Making renovation feasible: Aligning solutions with homeowner realities

European real estate isn’t approaching net zero quickly enough—especially in the residential sector. While policies and technically viable pathways towards a zero-emission building stock by 2050 are increasingly well-defined, most homeowners are unaware of the policies driving this transition and don’t make renovation decisions based on technical feasibility alone. 

To scale residential decarbonisation, available measures must be worthwhile, affordable, manageable, and timely to homeowners. Solutions that are optimal at a systems level may not be attractive to individuals in the real world.  

ING has partnered with Guidehouse to commission research into the interventions needed. The resulting white paper, “Making renovation feasible: Aligning solutions with homeowner realities”, explores a way to bridge the gap between renovation potential and real-world action. It combines cost-optimality analysis of representative building types in Belgium, Germany, and the Netherlands with homeowner segmentation to better understand which renovation packages make economic sense, who is likely to adopt them, and what barriers stand in the way. 

Key insights 

• Cost optimality helps identify which renovation packages make economic sense. The most effective renovation pathway varies by building type and starting condition and balances investment costs, energy savings, and lifecycle value. 
• Because homeowners differ significantly in their need, ability, and motivation to renovate, economically attractive solutions aren’t equally accessible or appealing to everyone. 
• The main challenge is the decision gap. Even economically viable renovation packages may not be adopted if homeowners face affordability constraints, perceived risk, complexity, timing issues, or structural barriers.
• Targeted policy, finance, guidance, and delivery models are needed to close this decision gap. Tailored intervention strategies can help homeowners overcome specific barriers and increase renovation uptake and depth. These include financial instruments that address upfront renovation costs as well as blended finance, guidance, and priority-targeted support for homeowners and buildings facing the greatest barriers to action. 

The bottom line: While more ambitious regulation is ultimately required to mandate action in this sector, the residential decarbonisation challenge won’t be solved by regulation or technical optimisation alone. It will depend on whether policymakers, financial institutions, and market actors can make renovation feasible for the homeowners expected to act. That means accelerating the shift from exploration, generic solutions, and one-off transactions to targeted interventions, staged renovation journeys, and actual homeowner uptake.

Read the white paper