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The State of Green Building
A few communities, designers and builders went against the grain, and they evolved into the green building movement. It was long considered a fringe movement, but rising energy costs, persistent forecasts of global shortages, renewed blackouts, dependency on foreign oil, demand for better housing, and health issues concerning indoor air quality are making green building the benchmark, the mainstream, the future. Indeed, many argue that it's not about building green, it's about building right. For the third time in four years, Professional Builder surveyed consumers and home builders about green building. Exactly which features - green and otherwise - do prospective home buyers want, and how much are they willing to pay? How well are builders reading their markets, and which emerging issues concern them? To help us evaluate the survey results, we invited comments from Ray Tonjes, owner of Ray Tonjes Builder Inc. in Austin, Texas, and chair of the NAHB Green Building Committee. Methodology This report is based on 334 consumer respondents. To reach builders, PB e-mailed an invitation to participate in the survey online and a link to all subscribers with an e-mail address. They also were offered entry into a drawing for one of two $100 Home Depot gift certificates as an incentive. This report is based on 317 builder respondents.
Respondents averaged annual household income of $64,490, and 21% said they were in the process of buying a home. By a significant margin, consumers continue to view energy-efficient features as the most important upgrade in a new home. A full 92% called such features extremely or very important. On average, respondents said they are willing to pay $1,753 for energy-saving upgrades and hope to see a three-year payback on their investment. For some reason, consumer awareness about the tendency of certain products to off-gas declined from 89% in 2000 and 88% in 2001 to 64% this year. However, 76-79% of consumers consistently have said this issue is extremely or very important. And this year 87% rated the broader category of indoor air quality as extremely or very important. Builders About three-quarters of respondents said they are much more conscious of environmental goals and/or storm-water mitigation than they were five years ago. "I think this is happening for a variety of reasons," Tonjes says. "Storm water is now a federally mandated program. State and local governments are training builders. They've started to inspect and fine people. The word is out." We asked builders which of seven areas - site planning for solar access; public-transit-based locations; mixed-use or New Urbanist development; wetlands; storm-water mitigation; open space and natural corridors; and water conservation - are likely to change the most during the next five years (they could choose more than one). The top choice (55%) was water conservation. "This will be a growing issue and concern in many areas of the country," Tonjes says. "Low-flow faucets, showers and toilets are federally mandated. We'll also be using more native, drought- resistant landscaping because that's where a lot of water goes." The number of local green building programs is growing so fast it's difficult to keep track of them. In 2000, 68% of builders said their local market had no program. That declined to 62% in 2001 and 56% this year. But we've seen a downward trend in the number of builders marketing their homes and developments as green, from 61% in 2000 to 45% in 2001 and 28% in 2003. Several factors could be at work. First, only 16% of respondents said a majority of their homes are green. Second, the growth in green certification programs makes it difficult for builders to "greenwash." And third, as Tonjes points out, many cities and states are mandating energy codes. Some are mandating other ecological practices. As the green baseline rises, the marketing advantage falls. When we asked builders which products buyers request most often (they could name more than one), 65% said formaldehyde-free insulation, 39% said a heat-recovery ventilation unit, and 29% chose solvent-free wood finishes. All categories show a steady increase since the 2000 survey. Our research also shows continuing improvement in the availability of green building materials. Tonjes concurs. "In my personal experience, the availability of green building materials is growing slightly. Certain materials like OSB and engineered structural products have become mainstream. That's a huge hurdle to cross. New products are more costly, which delays their use." Cross-Comparison
A substantial number of consumers say resource conservation, indoor air quality and energy-efficient features are very or extremely important to them. Builders are catching on, but huge gaps persist. When it comes to energy-conserving features that buyers want and builders are providing, the picture gets a bit more interesting. Builders are over-delivering ceiling fans and doing just about right with insulation that exceeds code. Buyers appear to have stronger demand for high-efficiency furnaces and substantially stronger demand for Energy Star homes than builders are providing. The real surprise is the persistent indication that buyers want more passive solar design solutions to their thermal needs. Zooming in a bit closer, we see where buyers and builders are in sync in terms of resource conservation: water-conserving fixtures and faucets. Builders are substantially more enamored than buyers of engineered wood products. In all other categories, buyer demand continues to outstrip supply. On indoor air quality features, the gap appears to close just a little. Buyers want more of everything except low-VOC paints (given the strong interest in low-VOC paints in 2000 and 2001, this could be a function of less media coverage or a sampling anomaly), and they really want more heat-recovery ventilation units. Do all these gaps mean builders aren't listening to the market? "A survey is fine," Tonjes says, "but it doesn't force consumers to make real-life trade-offs. They may not want to pay extra if it means cutting a bath or square footage." On the other hand, Tonjes adds that builders can do a lot without adding cost. "Like material choice. Drought-tolerant plants don't cost any more than other plants. A higher-efficiency air conditioner and insulation can reduce the size of the unit you need and offset the extra cost." So are consumers willing to pay extra, at least in theory? On average, over three surveys, consumers have said they would ante up $3,569 extra for green features. On average, builders have said buyers will pay $2,474. Does it mean anything that the amount consumers said they will pay dropped to a three-survey low of $2,796? "Some features may have become standard," Tonjes says. "For example, high-efficiency air conditioning and upgraded insulation." Economic factors could be at work, too. While the recession hasn't affected home purchases, it could dim consumers' outlook about what they can afford.
Other National Trends "There is tremendous value in NAHB giving this issue and movement more emphasis," Tonjes says. "It will help move these practices into the mainstream."
Certification Programs Pruett sells luxury homes for $500,000 to $1 million. As a standard design practice, the company uses passive solar design features, such as ceramic tile for thermal storage and placement of glass and overhangs to mediate solar infiltration. When it comes to optional features, Smith says customers are particularly keen on high-efficiency air conditioning, central HEPA air filtration, vinyl insulated tinted windows and Icynene insulation. "We pride ourselves in being on the leading edge," he says. "We offer passive solar for water heaters and pool heaters." The Florida Green Building Coalition has certified two Pruett homes, with more in the pipeline. The certification process involves completing a checklist, documenting each item with photographs or receipts, hiring an independent agent ($200-$500 in Florida) to do a walk-through, and submitting a binder to the FGBC. "Quite a few certification programs are set up this way," Smith says. He should know. Smith has been president of the FGBC for the past two years. He says production builders and developers in Florida are getting on board as well. The FGBC is the first certifier to extend the process to developments, emphasizing New Urbanist design. The Bonita Bay Group has had one subdivision certified and has another under review. WCI Communities is preparing to submit paperwork for a third. "As more developers get involved, builders will be forced to pick up the pace," Smith says. A Personal Experience He then started experimenting with improved construction methods. "There wasn't much information back then," Coursin says. "We bumped our way through." Today his firm, Cedar Bay Homes, emphasizes indoor air quality and energy efficiency in the three to six homes it builds each year. Building a house to Kitsap County's Built Green standards typically adds less than $2,000 in costs, Coursin says. "How you do things makes a big difference. If carpets come in three to four weeks early and off-gas in the garage, that cuts off-gassing by 75%. If you offer better appliances and heating, windows and cabinets, people see value in that, and they'll pay $3,000 to $5,000 more in a heartbeat, especially if you can show it's healthy and will improve their fuel bill." For builders who haven't transitioned to more ecological practices, Coursin advises, "You don't need to be scared. It's a positive thing. You'll find the general public is light-years ahead." Green Programs Multiply Some programs are mandatory. Most are voluntary. "All," Morgan says, "touch in some way or another on energy and water conservation, water quality, efficient material use and reuse, health, safety and community issues, like where the building is located and its site impact." If your market lacks a green building program, Morgan recommends starting one right away. "Environmental issues are a high priority for buyers across the country," he says. "If you don't get on board now, you'll have to scramble to catch up." How do you start? "Bring the stakeholders together," Morgan advises. "The home builders association has to be involved. Add local utilities, governments and environmental organizations. Determine your priorities, and then develop a plan and rating tool that will meet the needs of as many as possible." Green Building Resources ARIZONA Southern Arizona Coconino County I-Built CALIFORNIA ACWMA Green Building Program Santa Monica Green Building Program California Green Builder Program Chula Vista GreenStar Other California cities with programs in progress: Berkeley, Oakland, Pleasanton, San Diego and San Jose Other California counties with programs in progress: Contra Costa, Marin and San Mateo COLORADO Built Green Colorado Green Points (Boulder) FLORIDA GEORGIA HAWAII MICHIGAN MISSOURI NEW JERSEY NEW MEXICO Alliance for Green Development Inc. (in progress) NEW YORK Hudson Valley HBA Schenectady HBA NORTH CAROLINA OHIO OREGON G/Rated (Portland) TEXAS Frisco Green Building VERMONT VIRGINIA WASHINGTON Built Green of King/Snohomish Counties Built Green of Southwest Washington Tacoma-Pierce County Built Green WISCONSIN |
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