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Andrew & Stacy: The Green Team

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October 19, 2007

Will the market for green homes swell?

There's a discussion going on in my professional circles about the market for green homes. Many insist that rising energy prices and concerns over climate change will kick-start the market for green homes, without the industry or government having to help create a market.

Some say it already has. But others insist that homeowners at large don't have a clue -- and that without an education about the options available to them they simply don't know what to ask for -- and won't ask for it unless it's plopped squarely in front of their noses.

What's your opinion? Will homeowners learn on their own to ask for green homes? Are you already hearing them ask in your market? Will there need to be a significant, deliberate effort on the part of government and industry to educate consumers so that they know what to ask for?

Posted by Stacy Hunt at October 19, 2007 3:37 PM

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Comments

While I have some clients that look into this green building idea, The suppliers around my area do not carry much in the line of these energy efficent products. Also when they do, the stuff is so expensive my customers often do not want to pay for the added expense. Until these products come down in price and are offered more in the big box stores where people can touch and feel these items, I do not see this being a trend in the middle income homes that we primarly work on.

Posted by: The Home Care Club LLC at October 23, 2007 6:40 PM

OUR COMPANY SPECIALIZES IN CUSTOM HOMES IN THE DESERT SOUTHWEST. EXCEPT FOR THE SUMMERS THE CLIMATE IS RELATIVELY MILD; AND BECAUSE OUR CLIENTS BUILD HOMES IN THE 10,000 TO 23,000 SQ. FOOT RANGE EXPENSE IS NOT A FACTOR. IF THEY GO GREEN IT IS BY CHOICE NOT BY COST. OVER THE PAST FEW MONTHS, OUR WORK FORCE HAS BEEN REDUCED BY ABOUT HALF, BUT NOT BECAUSE OF LACK OF CONTRACTS. THE OTHER CONTRACTORS (CONCRETE, ELECTRICAL, PLIMBING ETC.) CAN'T MAN THE JOBS.

Posted by: TOM at October 23, 2007 8:33 PM

I am a homeowner and am doing a remodel on my home. I am trying to use everything that is energy efficient. The average homeowner would use the energy efficient appliances if their manufactures would let the general public know about them. I have to do research to find out information. The big box stores only supply what the general public knows about. The manufacturers need to do a better job in getting out the information to us.

Posted by: Anonymous at October 23, 2007 10:05 PM

We are building green. It required alot of research on our part to do the "right thing" since our builder was not very willing to spend the extra money and slow the building down to get green materials sent in. Many of our local building supply company were not stocking green materials. The windows and appliances were the easiest items to buy green. If builders and suppliers are not supporting green it will be hard for buyers to know if they are really geting green.

Posted by: Cindy Wilson at October 24, 2007 7:21 AM

This is EXACTLY why I have started my new business. After doing my own Green building research since the first gas crunch in the '70's, I was frustrated at the lack of enthusiasm on the part of local builders and suppliers, and the hunger for information by consumers, at least in my area (St. Louis). Using what I have learned, I am preparing to build an average-sized and priced, Super-Green, Zero-Energy, High Performance home of my own, then opening it up to scheduled tours to show the public what Green building and remodeling is and how easy and affordable it can be.

Posted by: Don at RiverBend Homes at October 24, 2007 10:01 AM

So far, everyone is pretty 'right on'. The problem is the proverbial two sided coin. Big box stores won't carry the product (they never educate) until it is in demand and it won't be in demand until the customer is educated. The builder is making money doing what he always does, so why learn something new. "Leave to the new kids and the hot shots".
That attitude spells the end for 'green' and/or 'solar, again' and/or 'the hydrogen economy'. Unless the investors see outrageous profits, in ain't happening.
The sole possiblility of the energy costs driving us into a recession and truly shaking up the marketplace, will be the most likely scenario. Are we running out of oil & gas. The pricing climbs seem to indicate it's comming faster than anyone ever imagined.
GET OFF THE GRID, NOW! IT AIN'T GONNA GET CHEAPER!

Posted by: Old Wolf at October 24, 2007 10:14 AM

I simply don't buy Stacy's comment for two reasons. First, arguably there are "green" alternatives for each of a home's mechanical systems that are more expensive than off-the-shelf items at the local building supplier. Some may be cheaper, but require higher installation costs, some may be more expensive but save on labor and others still may be relatively cost-neutral. The point is this: Pay me now or pay me later. No homeowner will ever say "Yes! I want to pay higher monthly energy bills." It becomes a question of higher initial cost with payoff over time or lower initial cost and higher monthly costs. The homeowner must then strike a balance between these two alternatives and determine if the length of time to realize a payoff from the initially higher investment in green products is worthwhile for their planned length of stay in the home, etc. For Stacy to state categorically that, when offered a choice, her clients do not choose more efficient systems is a matter of poor presentation in my opinion.

Second, being green and energy efficient also includes education and training on all those involved with the construction of the home. Even a house with the most efficient mechanical systems available and poor construction techniques cannot outperform a home with "standard" mechanical systems and excellent construction techniques. In short, the question is simply not about purchasing decisions on a home's mechanical systems - it involves much more.

If there were a third point I would say there is the element of how homes are typically built in the United States. Relatively few people get to build a custom home from scratch - period. Most new homes in the United States are built by production builders. A production builder always has plenty of options on different types of finish work, adding square footage and many other cosmetic choices. It is the very rare exception that "green" choices in mechanical systems will be made available to a potential home buyer. Pulte homes is the only large-scale production builder I am aware of that is deeply involved in the process - but only for certain communities dotted throughout the U.S. A production builder who is presenting the potential home buyer with choices to upgrade their mechanical systems may feel they are raising suspicion with the potential buyer that what they are getting is the absolute minimum and not of good quality. Even offering to sell the systems would necessitate the prior step of educating and training their construction crews on the different types of systems and how they are installed. Let's face it - most production builders are not using highly skilled union laborers. In many cases they are lucky if the workers on the job site have any type of formalized training. And of course I refer back to my second point above that techniques using existing building materials and mechanical systems is already lacking in quality and attention to detail.

As a final comment, no one wants a home that is energy INefficient. In all cases it is the home builders - the professionals of the industry - that are looked upon as the experts, but the very people who build most of the new homes are the same people who have the least to gain from these offerings. The largest market by far would be for a company to be the one-stop-shop experts on developing cost-effective solutions for homeowners on a case-by-case basis to "retrofit" green techniques and products in their existing homes. I am sure this company already exists, but it will take time to grow this market as existing mechanical systems need replaced and consumers become better informed.

*** Tim, you've got great arguments, eloquently stated. I'm just not entirely sure who you think you're arguing with, as I'd agree with most of your points, and none of them contradict mine. ;) - Stacy

Posted by: Tim at October 24, 2007 2:25 PM

I think most of us will agree that for Green homebuilding to become mainstream, it will take an effort by someone to teach the public (and in many cases, the builders) what is available, what it costs, how it works, why it's better and where to get it. They also need to see, hear and feel the difference a High-Performance home can make compared to normal building practices.

Posted by: Don at RiverBend Homes at October 24, 2007 6:36 PM

There are many ways to save energy in a home without building a no expense spared home. You can build a green home by not only using energy saving materials but by also making sure that the things your ripping out are reused by others using craigslist or donating to other organizations. As well as using recycled materials for your own remodel. A Green home isn't so green if all you've done is rip out and put it all in a landfill. I'm having a new roof put on and at the same time raising it reusing the lumber 2x6's in the expansion of my bathroom and using engineered lumber in the new roof with the south facing side having the solar shingles, on demand hot water heaters and all energy star appliances. All run off the new roof and batteries that will store my energy in the rafters in the garage. The old bathroom fixtures and Kitchen cab's are being given to habitat for humanity. Doing a little is better than nothing and I feel that what I'm doing will greatly increase the value of my home since the electric rates are going up about 20 or more dollars a year.

Posted by: David at October 24, 2007 8:29 PM

Sorry, I misread the posting author. I disagree with the points made by the Home Care Club guy for the reasons mentioned in my previous post. Stacy - you are OK!!! And thanks for the comment.

***Thanks, Tim. I'll have to check out the "Home Care Club guy" myself. :P

Posted by: Tim at October 24, 2007 8:32 PM

As a suppler of interior finish products,I believe that if manufactures recognize the growing issue. They will jump on the wagon. Making our being able to serve this green movement, a whole lot easier.

Posted by: Ben Nagel at October 24, 2007 10:28 PM

Thanks for this wonderful posting of so many ideas and points of view. I am not in the home building industry, but just a simple consumer with a middle class income. My goal in the next year is to be able to purchase my own home, so my research begins NOW. I am torn between building from scratch or purchasing previously owned and possibly inheriting problems. Building from scratch would allow me to integrate many green home innovations, but older homes have a charm that appeals. With older homes comes rennovation and so my research includes how to responsibly reuse or recycle what I am replacing. There is a cost consideration, indeed, but the payoff for 'going green' will be reflected in the cost of maintaining my home when I retire in 15 years or so. So much to think about, but I just wanted to voice what the average Joe or Josephine has to work with in this economic climate. Thank you again for all the information you've offered.

Posted by: Linda at October 25, 2007 8:35 AM

All of the education solutions hinted at or proposed take too much time. Kids in school won't be in a position of influence for twenty years So, it's up to us to DO IT - not educate and sell it.
Consumer Federation of America published a study 3 years ago, showing the Natural Gas Reserves declining and usage by China and India increasing. Since the study, these unfettered users have increased even more. Current estimates are 5 to 7 years of NG left. How many of oil?

Green isn't an option, it's mandatory. Don't you get it ??

Posted by: Old Wolf at October 25, 2007 9:48 AM

Cindy (and anyone else who is interested):
I would really like to talk with you about your business. I too am looking into starting a business specializing in green construction and remodeling. Would love to share ideas.
Donna

Posted by: Donna LeGrand at October 26, 2007 1:59 PM

We view "green building" as a catch all term for "energy efficiency" in the broad sense.
We achieve our objectives in this area by using a synergy of the 8" walls in our steel framed homes, and a stronger roof for better insulation from the hot California sun. We combine the better structure with a cost effective, highly efficient geothermal heat pump (ground based)for cooling, and a solar array on the roof for energy production. We don't use any heating except for the fireplace occasionally.
It works for us, it could for you!

Posted by: Robert Iversen at November 1, 2007 5:19 PM

Building green is the way to go! But where im located, people just don't seem to care about the green thing. Were a fairly new construction company and we strive to make energy efficent homes as best as we can. Its sad to say, but most people here just dont care and we cant embrace the whole concept on the green movement without going over budget. This means people are not willing to pay more to save. Its difficult too hear people say contractors are not pushing the green movement, but we are and no ones listening.

Posted by: Martin Porras Jr. at November 12, 2007 1:00 AM