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Real Estate News and Advice |
July 10, 2009 |
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It Is Not Just Builders Anymore; Consumers Eagerly Supporting Green Building & Sustainable Living
by Peter L. Mosca
Once the domain of builders and construction workers alone, green building is now reaching, and being accepted by, the consuming masses and the building industry could not be happier. Bob Jones, Vice President of the National Association of Home Builders (NAHB) recently told Congress that "more than 100,000 homes have been built and certified by voluntary, builder-supported green building programs around the country since the mid-1990s." Testifying before the House Small Business Committee on behalf of NAHB members, the majority of whom are small business owners who currently build about 80 percent of all new homes in the U.S., he added, "The green movement in residential construction derives much of its strength from its voluntary nature, which provides builders and developers the flexibility that is essential for incorporating the principles of sustainable design." "While media interest in climate change and global warming is a relatively recent occurrence, NAHB has been consistently ahead of the curve in working to develop affordable, energy-efficient and environmentally construction techniques," said Jones. At its ninth annual Green Building Conference, the NAHB announced that sustainable building products and techniques are advancing quickly into the mainstream and that the group is moving aggressively to bring the movement to national prominence. The practice of green building, as defined by Wikipedia, can lead to benefits including reduced operating costs by increasing productivity and using less energy and water, improved public and occupant health due to improved indoor air quality, and reduced environmental impacts by, for example, lessening storm water runoff and the heat island effect. According to new research, it appears that consumers, too, are catching on to the many benefits of green building, and they are willing to pay extra for them. A survey of more than 250 residential builders across the United States released by Green Builder® Media and imrecommunications.com reveals that buyers are willing to pay a premium of between 11-25 percent for green built homes. The same builders report that the average green homebuyer is between the ages of 35-50 with a college degree and fair understanding of green products. With the increased interest among homebuyers, it is not surprising that 96 percent of homebuilders in the survey group intend to incorporate more green building materials and processes into their business in 2007. Just 51 percent of those same builders currently report using green products or practices regularly. The primary reasons builders provided for not using more green products were price and availability. This suggests that manufacturers have an opportunity to penetrate the market with new cost-competitive product lines, and also that there is market share to be gained by these manufacturers by providing a wider selection of product choices. "Builders are buying green products because they feel it's important to both the environment and their businesses. This shift in behavior and purchasing patterns confirms just how significant the green building movement is," said Sara Gutterman, CEO of Green Builder Media. "As demand increases for green products within both the consumer and trade market, manufacturers will respond by accelerating research and development, which benefits both the environment and homebuyers." The top reason builders claim they are adopting greener practices is because it is good for the environment, but they are quick to acknowledge that they purchase green materials because homebuyers have requested them. They also assert that using green products increases their profits by enabling them to build a differentiated, premium home with a higher sale price. An NAHB new homebuyer survey confirms that feeling. It found sixty-three percent of the green home buyers said that their green purchases were motivated by the lower operating and maintenance costs that come with energy- and resource-efficient homes. Eighty-five percent said they were more satisfied with their new green homes than with their previous, more traditionally built homes. Public interest in sustainability also extends into the existing market, with the survey finding that about 40 percent of home owners who had recently completed remodeling or renovation work on their properties had used green products or materials. Growth is likely to continue and industry trade groups will be at the forefront working with elected officials along the way. Ward Hubbell, president of the Green Building InitiativeTM (GBI), joined industry representatives from the NAHB, U.S. Green Building Council, Healthy Schools Network and others, who testified during a special Congressional hearing titled, "Green Buildings: Benefits to Health, the Environment and the Bottom Line." As part of his testimony, Hubbell emphasized three key points for the committee to contemplate as they develop future sustainability policies:
"To succeed, we must first address fundamental issues within the green building movement-such as the all-too-common gap between sustainable design and actual building performance-which is why we need the collective expertise of the entire building industry," added Hubbell. To help bring uniformity to the green business and sustainable building, the NAHB is collaborating with the International Code Council to develop the first and only national consensus-based residential green building standard that will be certified and accredited by the American National Standards Institute and based on the two-year-old NAHB Model Green Home Building Guidelines. The National Green Building Standard is expected to be completed in early 2008. Green Builder® Media is a leading media group that provides information and services that relate to green building, responsible growth, and sustainability for the North American building market. Published: August 16, 2007 Use of this article without permission is a violation of federal copyright laws.
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