Green Houses Will Reap Sales in New Market
Home builders that embrace green construction strategies will be in the best place to increase sales as the housing market changes, according to Paul Cardis in his article “Green Design And Construction Lead the Way to Customer Delight”. He offers four tips for home builders that want to tap into the upcoming market for energy efficient and green homes:
1. “Go green.” More and more consumers are realizing the importance of buying green homes. Energy efficiency measures alone can save them thousands each year. The rising number of “light green” consumers, those motivated to go green by the promise of energy cost savings, is going to push the demand for these types of homes. “Dark green” consumers, those who have been on the bandwagon for years and are doing it out of their beliefs about the planet, are going to be looking for more than just energy efficiency. Features like recycled materials, indoor air quality, local materials, and non-toxic interiors are going to be popular with this set.
2. “Share your green philosophy.” This ties in closely with the next point, but consumers want to know that their home builder is doing all they can to reduce their impact on the environment, as well as reduce costs. Including a green philosophy in your marketing materials may make the difference between who a consumer chooses to buy their house from. It is important to make sure this philosophy extends beyond just buildings and construction practices. Take a look at day-to-day business practices to see if they can be “greened up.”
3. “Find your green niche.” Cardis advocates knowing your potential customers “so you can combine tangible value with the green benefits they want and can afford.” Whether it be high-end or low-income housing, each presents its own green design challenges. Knowing what your customer base can afford, and where their money is best spent, can help you gain their confidence, and, hopefully, their business.
4. “Avoid green washing.” Basically, don’t make promises you can’t keep. Some home builders are guaranteeing that their houses will not cost more than X dollars a year to heat and cool. If you can make such a promise, great, but be ready to pay if the house doesn’t perform. Be sure to research materials and equipment carefully, as the green claims of some products are not always true. Make sure that if you are advertising a “no VOC” (volatile organic compound) house, that all of your materials measure up.
You may also be interested in an article on The Builders’ Blog on Environmental Construction Products and Trends
I appreciate the fact that you have brought this topic up in your blog as it is a very interesting phenomenon that we will be dealing throughout the upcoming years.
I was once asked the question: What is better for the environment? A man living in a house with no environmental footprint, 100 miles away from his work to which he commutes everyday, or a man living in a house with a huge environmental footprint who walks to work everyday?
Sustainable developments and houses equipped with green, energy saving technologies are wonderful for the environment. Incorporating these technologies into our everyday lives…still a work in progress
I, being on the development side of things, see a whole new frontier to be explored in the years to come; with advancements in green technologies such as solar power along with the excitement surrounding sustainable ‘green’ living, the possibilities are endless. However, I am not 100% convinced the ‘new’ market will be good for the ‘green’ houses. Assuming that this ‘new’ housing market will come of age during or after the current economic crisis, we can expect that lenders are going to require a much higher percentage down when purchasing a house. In most cases many ‘green’ houses are more expensive initially for a potential homeowner to purchase, and even though they receive economic benefits down the line, the amount of cash upfront will probably scare away many potential buyers. Given these assumptions, coupled with advancements in green technologies that will only continue to make ‘going green’ more affordable for the masses, I believe it is not a good time to invest the ‘green’ houses. What I believe will ‘reap’ the benefits of the ‘new’ housing market are the developments that infuse the New Urbanism and S.M.A.R.T. growth ideas to create a more sustainable living environment.
As the United State of America starts to move away from its dependence on foreign oil and towards a more responsible lifestyle, we can expect to see a migration to more densely packed mix-use areas centered around public transportation.
Stephen,
I have to respectfully disagree with your idea that green houses have to cost more, and that consumers aren’t going to be willing to pay more if they do. I believe that good design can offset and/or minimize the initial cost premiums for green buildings, both in the commercial and residential market. While it is true that as technology gets better this becomes easier, I think it can be done even now. Secondly, I have read a couple of studies that show potential homeowners would be willing to pay more for green features. Now, does this information apply in the current market with the bottom falling out of everything, I don’t know. But, at least a few months ago, it was true.
I do agree with your premise that better urban design has a role to play in sustainable building. I think your first paragraph states that quite elegantly. Education is the key here, and that is part of my mission. While the current economic climate certainly isn’t good (to put it mildly), I think it will put sustainable building and development at the forefront as we come out of it. The stated goal of energy independence is going to require more than the development of alternative fuels and off-shore drilling (sorry for the political tone there).
I believe you are correct when you state that “sustainable building and development at the forefront as we come out of [the current economic climate].” Times are serious enough, extreme enough, that energy efficient design is becoming less a choice and more a necessity, i.e. who is going to build a home they can’t afford to heat or cool? To this end, the application of doing more with less…the object of design science…is not an option, but an imperative.