Green Still Pulling In Green In Midst Of Recession
Posted on Mar 13, 2008 - 01:50 PM
By: Adam Beazley
According to a recent article over at Newsweek, green homes are very hot right now, despite what is going on in the real estate market. While typical homes drop in value, energy efficient, environmentally friendly homes are not only retaining their value, they are now in demand and are selling at premium prices. The National Association of Home Builders, released some survey results showing that the average home buyer was willing to spend an additional $8,964 on a green home, if it would in fact save them money on their utility cost.
Unfortunately, the average person knows very little about green building, and that is probably because it is such a broad topic which covers many different facets. When thinking of the term “green”, most people instantly picture huge solar panel arrays and wind turbines. However, true green building techniques are executed well before these types of expensive additions. From site selection, building placement, energy efficiency and indoor air quality, real green building starts before the ground is even broken. It is only after these green building techniques are put in place that is it cost effective to start adding alternative energy sources. My rule of thumb is every dollar spent in energy efficiency will save four dollars on alternative energy.
Architects(me:-) and builders are working very hard to educate consumers about which products and techniques will give them the biggest bang for their buck. In the meantime, organizations like the U.S. Green Building Council and Energy Star are offering certification programs to help rate the greenness of these homes. These certificates will allow home owners to receive additional tax breaks from the Federal government, and in some cases, they will be eligible to receive state tax breaks. Green building advocates are hoping that these certificate programs will become widely accepted, like Consumer Reports, and create higher resale values for the home owners.
This shift toward green building just might turn around this broken industry and many smaller builders will attest that their numbers are supper hot. Unfortunately, most of the larger builders are still only scraping the surface, doing just enough to get by. However, as this market shifts, I believe that larger builders will be following suit. The simple fact is that people are becoming educated and they know that this “green stuff” means more money stays in their pockets, regardless of their political or environmental views.
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Show/Hide Comments (5)
By Kristine Livadas on 03/14/2008
Adam, My husband and I are greeniacs. I have a blog and a future green shopping website and he is a general contractor. Here on the East Coast we haven’t seen a huge demand for green building, as much as we promote it. A recent poll in REALTOR magazine indicated that only 17% of consumers care about “green” building when buying a home, and 46% cared slightly but wouldn’t pay a penny more for it. The balance didn’t care at all. THis was a national poll. We want to promote green building here, and my questions is, as an architect, do you design sustainable homes personally, and how often are you doing it?
By Adam Beazley on 03/14/2008
Hey Kristine,
Thats crazy that the results from Realator magazine varied that much from the NAHB. I have not seen a “HUGE” demand either, but the demand is definitely there, but it is probably more regional to areas like CA, Austin-TX and Ashville-NC where green is the in thing. Here in Louisiana its not that big, hell I am one of about 50 LEED professionals in our state.
Personally, I have not gotten a chance to design a true green home yet, however, I have been involved with a few LEED certified federal buildings. Now that I think about it, those federal buildings were out of state in Florida. I did have a friend here who only did green homes and was doing quite well with it.
Anyway, about the people who wouldn’t pay a penny more for “green” just haven’t had it explained to them properly yet. You can’t just tell someone “it’s green” pay us more for it, but if you can show how this green home will save over 50% in monthly energy cost as compared to a similar home done with typical construction techniques, they will bite. It’s all about how you sell it, and right now people are just not well educated about it.
By Adam Beazley on 03/18/2008
Hey Kristine,
Found this little article about more green homes getting sold for a premium: http://www.mercurynews.com/ci_8530078?source=most_emailed
By Jim Bisnett on 05/11/2008
Building green is the wave of the future. Here is a link you might find interesting. It’s about Greensburg Kansas, an entire city devastated by a tornado. The entire city has decided to rebuild eco-friendly.
http://www.inhabitat.com/2007/07/23/leonardo-di-caprio-to-build-eco-town-in-kansas/
By Joe on 06/04/2008
Wow it’s good to see a green house. I think i should change my workplace to green for better production.
http://www.vacationrentalhotspots.com
