Understanding Flemish apartment owners' financial decision-making in collective energy renovations: a qualitative vignette study

Abstract

Improving the energy performance of buildings is central to European climate targets, yet achieving large-scale energy renovations depends on individual homeowners' decisions. In apartment buildings, where costs and decisions are shared, these choices are particularly complex, as renovation outcomes are shaped by governance structures and the financial considerations of multiple co-owners. While previous research has examined financial considerations in household energy renovations, it has largely focused on individual homeowners and relied on quantitative approaches, offering limited insight into how apartment owners reason about and negotiate collective renovation investments. This paper addresses this gap by investigating the financial decision-making of 21 Flemish apartment owners (11 owner-occupiers, 10 landlords) through in-depth, vignette-based interviews. Thematic analysis identified three key dimensions. First, ownership emerged as a dominant concern: participants strongly resisted financing instruments that might jeopardise their legal or perceived ownership over their property. Second, apartments were primarily viewed as long-term investments, with renovations perceived more as preventing value decline than as generating additional value. Reductions in energy costs were rarely a decisive factor, particularly for landlords. Third, participants stressed the need for clarity and transparency, demanding comprehensive and predictable information on total costs, financing terms, and repayment conditions. Our findings show that financial decision-making in collective renovations is shaped not only by economic considerations, but also by psychological attachments to ownership, investment security, and trust. Policy frameworks should therefore combine financial feasibility with transparent communication and safeguards for owners’ sense of ownership and control.