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How Green Building Can Save Your Company


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green building; Builder magazine; Boyce Thompson;

Published in: Real Estate, Technology, Business
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How Green Building Can Save Your Company

  1. 1. Can Green Building Save Your Company? Boyce Thompson Editorial Director Hanley Wood
  2. 2. Why Build Green? <ul><li>To stand out from re-sales, your biggest competitors </li></ul><ul><li>To tap into a real consumer preference </li></ul><ul><li>To build better homes, with operational savings, a healthier living environment, and a reduced carbon footprint </li></ul><ul><li>To improve the resale value of your homes, customer satisfaction, and referrals </li></ul><ul><li>To help the environment </li></ul>
  3. 3. What Motivates Builders To Go Green Source: SpecPan Green Building Survey, September 2007 Among those involved in green building Environmental responsibility Build better homes Stay on leading edge of building trends Customer demand Keeping up with competitors Other
  4. 4. Environmental Record in the U.S.: Over-Consumption
  5. 5. Home Building’s Negative Impact on the Environment <ul><li>Since 1980, the U.S. has developed land at three times the pace of population growth </li></ul><ul><li>The average new home in 2007, at 2,500 square feet, was two thirds larger than a new home in 1970 </li></ul><ul><li>Buildings consume two-fifths of the country’s energy and emit about the same portion of its CO2. </li></ul><ul><li>Energy consumed by homes tripled from 1950 to 2006 </li></ul><ul><li>Homes generate 21 percent of the country’s CO2 emissions </li></ul><ul><li>The typical U.S. family spends about $1500 a year on utility bills, much of it wasted </li></ul>
  6. 6. Home Building’s Challenge for the Future <ul><li>We’ll need 89 million new or replacement homes over the next 30 years to keep pace with population growth. </li></ul><ul><li>Without a change, there will be a 48 percent increase in vehicle miles traveled in the United States between now and 2030. </li></ul>
  7. 7. What Green Items Motivate Home Buyers? What energy-saving features would be important to you to be standard in a new home or new community, knowing that the features will cost more upfront but will save money over time? Source: 2007 RCLCO Survey
  8. 8. Green Building Can Cut Household Energy Use in Half Source:2007 Building Energy Data Book, U.S. Department of Energy How energy is used in homes
  9. 9. <ul><li>36.4 percent of potential home buyers identified energy savings, health benefits, or the environment as their primary decision-making factor in their next home purchase </li></ul><ul><li>The lion’s share of those buyers, Greenback Greens, expect a payback within 4 years, which is probably unrealistic. Most green builders put the payback at between 6-8 years </li></ul>Green Outlook
  10. 10. A Strong and Growing Market <ul><li>HEALTH BENEFITS MAY BE AN EVEN MORE POWERFUL MOTIVATOR </li></ul><ul><ul><li>54 percent of Healthy Greens were willing to pay an extra $10,000 </li></ul></ul><ul><ul><ul><li>With no expectation of payback </li></ul></ul></ul>
  11. 11. Are you involved or have you been involved in any green building, remodeling or design projects? Most Pros Have Done a Green Project Source: SpecPan Green Building Survey, September 2007
  12. 12. Green Building: Coming on Fast <ul><li>Only 2 percent of new homes in 2005 were built to a green standard or guideline </li></ul><ul><li>Last year, our surveys show that 29 percent of builders participated in a green building program </li></ul><ul><li>By 2010, NAHB estimates that half of new homes will be built to one green building standard or another </li></ul>Source: SpecPan Green Building Survey, September 2007 Have you participated in a green building program?
  13. 13. Green Building: Coming on Fast <ul><li>There are currently more than 90 different green building standards or codes </li></ul><ul><li>California recently enacted a state-wide green building code </li></ul><ul><li>Florida recently enacted tougher energy requirements </li></ul><ul><li>Charlottesville is one of the first small cities to enact green building requirements </li></ul>Source: SpecPan Green Building Survey, September 2007
  14. 14. Pros Expect the Green Market to Grow Source: SpecPan Green Building Survey, September 2007 GREEN MARKET EXPECTATIONS OVER NEXT 5 YEARS Increase significantly Increase slightly Stay the same Decrease slightly Decrease significantly 88% OF PROS EXPECT GREEN MARKET TO GROW
  15. 15. Challenges to Green Building Source: SpecPan Green Building Survey, September 2007 Perceived higher costs by home buyers Higher costs associated with green building Lack of awareness among home buyers Lack of demand Availability of Green Building Products Availability of product information Availability of technical information
  16. 16. Green Products Used by Pros Source: SpecPan Green Building Survey, September 2007 ALREADY USE OR PLAN TO USE: High performance windows High performance insulation Water efficient fixtures Engineered lumber Recycled products High efficiency lighting Low VOC products Energy Star appliances Certified lumber Products with resource efficient content Alternative energy High efficiency HVAC
  17. 17. Rate on a scale of 1 to 5 scale, with 5 being extremely knowledgeable Mean = 2.34 Median = 2 Customers Don’t Know Enough About Green Building Source: SpecPan Green Building Survey, September 2007
  18. 18. How Much Extra Does Green Building Cost? Mean = 3.76 – 10% to 19% Median = 4 – 10% to 19% Mean = 3.08 - 10% to 19% Median = 4 – 10% to 19% Include materials and labor. Source: SpecPan Green Building Survey, September 2007
  19. 19. Craftmark Homes McLean, Va. <ul><li>Wants to become Washington D.C.’s best-known green builder </li></ul><ul><li>Rewrote product specs, changed construction practices, aligned with a third-party testing group, recorded a television show, and created radio ad </li></ul><ul><li>Offers free Energy Star certification at nine Maryland and Northern Virginia communities </li></ul><ul><li>Swallowed extra costs of $1200 to $1800 per house </li></ul><ul><li>Recycles jobsite waste </li></ul>
  20. 20. The Builder LivingHome <ul><li>Builder magazine will drop a sustainable, modular home on the floor of the IBS in January </li></ul><ul><li>A laboratory for sustainable building practices, the home will convert sunlight to electricity, capture rainwater, and consume very little power </li></ul><ul><li>It will be built in a carefully controlled factory environment with sustainable products </li></ul>
  21. 21. The Jones Company Nashville, Tennessee <ul><li>Standardized on green homes earlier this year using green suppliers </li></ul><ul><li>Every home tested by a third-party under Energy Star standards, producing $200 to $400 in annual energy savings </li></ul><ul><li>Buying brick from a “green” Boral Brick facility in Indiana </li></ul><ul><li>Using advanced framing techniques to recycle waste, low-e windows, water-efficient show heads, improved indoor air </li></ul>
  22. 22. Croft Place Townhomes Seattle, Washington <ul><li>Proof that green homes can be done as affordable </li></ul><ul><li>21-unit, low-rise rental project combines a laundry list of resources, and energy-saving features </li></ul><ul><li>Built to Seattle’s Built Green program </li></ul><ul><li>The apartments could have been built for less, but the final cost was comparable to medium- or high-end housing elsewhere in the city </li></ul>
  23. 23. Beazer Homes Atlanta, Ga. <ul><li>Standardized company-wide on green building standards at no additional cost to buyer </li></ul><ul><li>Drove down costs by reducing plans, SKUs, and suppliers </li></ul><ul><li>Designed its eSmart Homes around energy efficiency, indoor air quality, and water efficiency </li></ul><ul><li>Surveyed more than 1,000 homeowners found that 75 percent of buyers want “greener” houses, but need builder to show the way </li></ul><ul><li>Typical house will save buyers $507 in annual energy and bulb replacement costs </li></ul>
  24. 24. Evening Rose Tallahassee, Fla. <ul><li>This $40 million traditional neighborhood standardized on LEED homes </li></ul><ul><li>It encompasses more than 36 acres and 130 new homes </li></ul><ul><li>Homes start at $315,000 and must achieve minimum of LEED certification with upgrades to silver ($3000), gold ($6000), or ($10,000) platinum </li></ul><ul><li>Town center features more than 120,000 square feet of retail, restaurant, commercial, and live/work space </li></ul><ul><li>Landscape features mini-stormwater bio-rentention islands in addition to stormwater ponds </li></ul>