Green Housing Costs Too Much: Fact or Fiction?

It is common enough belief that green housing is not affordable housing.  Green products (e.g. Prius, Solar Panels) are often associated with paying a premium, whether or not that is actually the case for any given item.So it is no surprise that, when it comes to designing green residences, one of the biggest obstacles to doing so is concern over cost.  Especially in cases where budgets are tight and expectations high, energy efficient housing might seem practically impossible to a client.Architects, builders and other contributors to green home design and construction have a significant advantage – and some might even say responsibility – when it comes to educating the population about living green.  Architects design one of the biggest-impact items in a homeowner’s life, any way you look at it – financially, physically and often even emotionally.  There’s a lot more tied up in buying a house than just a client’s desire for a place to sleep and stay out of inclement weather.So if you want to design green, let’s take a look at two different scenarios where cost might become a problem, and how to handle them.

“How much more is it going to cost me?”

This is a tough question.  Green building doesn’t have to cost more.  In some cases, a more efficient house could be achieved by moving windows to different faces of a building or getting a more efficient furnace rather than upgrading to triple-pane windows.  There are also incentives out there that make green building more economical.  These situations occur on a case-by-case basis and require some analysis to determine.In general, though, green housing will cost more upfront.  Triple-pane windows cost more than double-pane, spray foam costs more than cellulose and a 96% efficient furnace costs more than a 90% efficient furnace.  But upfront costs are not all that matters to a homeowner’s bottom line.   Energy bills, mortgages and resale value are important as well.Most homeowners make monthly mortgage payments rather than paying upfront, so aside from a down payment, the upfront cost doesn’t matter to them.  In some cases, building green can reduce a client’s energy bill enough that it actually offsets the additional mortgage cost, so it will actually cost them less and be better for the environment.Building green can also increase the resale value, so homeowners can recover much or all of their initial investment on green solutions when they sell the house.  Earth Advantage Institute, a nonprofit green building resource, published 10 green building predictions for 2012.  Three of these, (5) Consumer-home energy tracking devices, (7) Transparency in home marketing, and (8) More accurate appraisals, offer indications that the housing market will better value green buildings in the future.In fact, a quote in this article from the Executive Director of the institute, Sean Penrith, gives an example of the growing consumer appeal of green building.  He says, "While the economy has not been kind to most new home builders, we have seen a surging interest in home energy management and energy improvement among homeowners.  Those builders and remodelers who have adopted a transparent green message have been quite successful."  

(see the full article here: http://www.prnewswire.com/news-releases/10-green-building-predictions-for-2012-from-earth-advantage-institute-137470028.html).

“I want that one.”

In some cases, a client might walk in on day one with a very specific design or concept in mind that he is unwilling to let go of.  If you want to make it green, then the reality is that energy efficient housing can be upwards of 15% more expensive to build than traditional construction, depending on the approach you take. The Passive House Institute website states, for example, that “to achieve passive house standard requires an additional upfront investment of approximately 10% of the construction budget.”This is where your education and knowledge of energy efficient design and construction methods will be most important.  Additionally, having the right tools at your disposal to easily demonstrate cost savings and ROI for traditional versus green construction will go a long way toward “green”-lighting the energy efficient version of a preferred design.By being able to demonstrate to your client that going green is the correct long-term choice, initial construction cost might become less of an issue. It’s possible that you’ll even convince him to scrap his original desire for an already-existing design and go with something new.These are just two examples of how cost concerns can be mitigated or even eliminated when it comes to merging your expertise with your clients’ desires. And remember: those who provide green housing, such as architects and developers, have the ability to help keep costs low and deliver within a client’s budget.Education of yourself and your clients, as well as a willingness to take a stand with only designing or retrofitting green can go a long way toward changing the misconception that green housing is not affordable.