In the city of Seattle, it isn't uncommon these days to see new commercial and residential buildings advertised with LEED certification, sustainably recycled lumber products, low-VOC paint and other green building products utilized. Within the past few years even, we've gone from learning about the new green methods to practically expecting them in new projects. Some of us have grown curious if having a sustainably built home is cost effective; and is it cost effective for both builders and buyers, according to Seattle Pi.
According to a study conducted at the University of California, 1.6 million homes built between 2007-2012 were surveyed and those with a green certification label on average added 9 percent to the home's selling value and even a little more in areas where environmental protection is valued (areas where the percentage of hybrid automobiles was high). Absent other factors, a home builder would like to sell a home for 9 percent more, but only if it does not cost 9 percent more to build.
A wide array of opinions have been floating around on the extra cost of building a green home. Some estimate the cost to be an extra 20-30 percent to build green, but as much as half of those costs are attributed to receiving LEED certification, which may not be necessary. Others argue that the additional cost to build green is only minimally higher (2-4 percent) or even less expensive to build than conventional homes, but these calculations often take into consideration future savings for less utility costs or cheaper maintenance due to the better materials used in construction. While these savings are real for the homeowner who will pay the utilities and maintenance once they buy the home, those costs do not help the builder who is worried about the upfront construction costs.
The truth is most likely that building a green home is more expensive than building a conventional home, but that extra cost does not exceed the premium that buyers are willing to pay for a green home. Whether that premium the buyer is willing to pay is due to the buyer's concern with the environment, their concern about resale value, or the extra savings they will receive in utility/maintenance cost, the end result is homeowners are willing to pay more for such homes. When people are willing to pay more, than builders will find a way to bring those homes to market and even with the extra cost, we will all benefit.
Read more about building a green home and home design and plans.
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