One of the nation's largest publishers of new homes magazines has begun
releasing a data from a major environmental survey that suggests that -
contrary to popular opinion - the public does want and will pay for
environmentally-sensitive upgrades to their homes.
Survey data is being released by Cahners Residential Group, publishers of
Professional Builder, Luxury Home Builder, Professional Remodeler and
HousingZone.com.
The report can be found by clicking here
According to contributing editor David Johnston, "Energy upgrades are one of
the first things that consumers would pay extra for -- up to $1000 - if they
could expect to see a payback through lower monthly energy costs in two to
three years.
"Only 5.1 percent of the home buyers said they would not be willing to pay
more in up-front cost for energy efficiency upgrades that would reduce
monthly utility bills."
Ironically, the publishing house commented that it usually is the builder who
believes consumers won't foot the bill.
"Too often the assumption among builders is that new home buyers want what
green building offers -- energy efficiency, resource-efficient construction
materials, improved indoor air quality, etc. -- until they have to pay for
it. Then, forget it."
Builders historically have believed consumers "would rather spend those extra
dollars on the status items-granite countertops, whirlpool tubs, etc. The
basic assumption is that green building must 'cost' more and thereby
eliminate the opportunity for cherished extras."
The publishing house suggested that home builders are "are almost exactly
five years behind their customers in their prediction of consumer interest in
'green' building."
The Cahners' survey also indicated consumers are very aware of environmental
issues in the building industry.
"When asked if, for the same price, they would rather have a home that used
old-growth trees or one that used no old-growth trees, 64 percent said they
would prefer a home that used no old-growth lumber," Johnson writes.
"These numbers correlate with surveys over the last decade indicating that
over 70 percent of the American public consider themselves environmentalists.
"Consumers are starting to see their home as an expression of their
environmental values."
Johnson said the survey found that buyers usually do not know how much
"green" products cost, but indicated most are willing to pay between $2,500
and $5,000 for a green upgrade.
He added that in home builder programs across the country, "typical green
upgrades run 1 to 2 percent. For a $200,000 home that would represent $2,000
to $4,000 in additional costs, well within the range consumers are willing to
pay."
Published: October 4, 2000
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