New Developments/Green Buidling

New home buyers are willing to pay more for “green” related as well as “energy” related items. It is true, however, that when asked they will pay more for energy related items than just green items.

First, energy related items typically have payback periods because of reduced energy costs over time. (Energy Star appliances, better insulation, better windows, PhotoVoltaic, PV water heaters, etc.). Home buyers, being pretty rational, buy the argument that any investment in these items will pay them back over time.

Second, “green items” (aka sustainable products) typically payback in terms of the livability of the house like better indoor air quality by using products that use recycled content (wood, flooring, decks, etc.) and/or don’t produce gasses (low VOC paints, insulation that doesn’t use formaldehyde, floor adhesives that don’t use toxic ingredients, etc.) and/or reduce waste (recycling programs for construction materials). These items induce buyers on two levels: one, many people are going or leaning “green” because they feel like they are doing their small part to “help mother earth” and two, many buyers are becoming informed about the bad stuff these things do to their health over time (this concern is especially true among houses where children are present and/or where there are baby boomers who are leading the craze about healthy living).

Third, indoor air quality, for example, is surprisingly ranked as one of the biggest concerns among home buyers and new homes give them assurances that their air is not contaminated. Combine this with the fact that many of the green items are getting mainstreamed and add little or no costs to the builder.

Fourth, new home builders have found it challenging to sell the features of these offerings let alone their benefits. This is the old marketing problem.