Green Home Affordability Hinges on Materials Prices

A study by Whirlpool Corp. and Habitat for Humanity shows a majority of home builders and consumers think reduced materials costs will improve affordability of green homes.

2 MIN READ

Common wisdom holds that green homes—those that address indoor air quality, water and materials conservation, and energy efficiency—are more expensive to build than conventional houses, largely because of the higher cost of materials and systems. Whether a green home costs more to build largely depends on the strategies and materials employed, and designers, builders, and consumers likely will continue to debate the qualities of green homes for years to come.

What builders and consumers seem to agree on, however, is that lower prices on building materials will improve the affordability of green homes, according to a recent study of 304 home builders and general contractors and 1,092 homeowners conducted by the NAHB Research Center for Whirlpool Corp. and Habitat for Humanity. The survey gathered opinions on the barriers to more affordable green building and how to overcome them.

Fifty-nine percent of the consumers surveyed said that lower-priced products and materials are key to green home affordability, and 75 percent of builders surveyed agreed.

Both surveyed groups favor financial incentives for green construction projects, with 53 percent of all respondents reporting that increasing homeowner incentives would improve green home affordability, and 36 percent suggesting increased incentives for builders. Sixty-nine percent of consumers believe both state and federal governments should offer incentives for purchasing green building products. Forty percent of builders think homeowner and builder incentives would help promote green building.

The good news is that builders and consumers both believe the added costs are—mostly—outweighed by the benefits of living in a green home.

Sixty-four percent of survey respondents reported the utility cost savings resulting from energy-efficient features in green homes are sometimes worth the added costs of building or purchasing a green home. Consumers’ reasons for favoring green homes despite the higher construction costs went beyond simple energy savings, however; 77 percent of respondents also indicated that positive environmental impacts and family health benefits made green home somewhat, if not very, important to them.

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