Green Homes - eco-friendly home building trends

American Demographics, Jan, 2001 by David J. Lipke

The eco-friendly homebuilding movement enters adolescence.

Judy and Michael Corbett are Heroes of the Planet. At least according to Time magazine, which awarded them that title in 1999 for their work in founding Village Homes, an environmentally-friendly community in Davis, California. The Corbetts began building Village Homes almost two decades ago. One of the first modern green developments in the United States, it features houses with passive and active solar heating systems, solar water heaters, an ecological drainage system, and a grid of paths for walking and biking. Over the years, the development has grown from 50 units to 240, and its popularity has soared. "The houses now sell in half the time, and for $11 a square foot more than the average home in Davis," says Judy Corbett. "Instead of being seen as a hippie subdivision, now people say we're too expensive and exclusive."

Once it was only a possibility. Today, developments like Village Homes have captured the interest of a growing number of homebuyers. And their influence is spreading: An estimated 50,000 eco-friendly homes have been constructed in the U.S. over the past decade. And in the not-too-distant future, the principles of environmentally-sound development may well be incorporated into the design, construction, and furnishing of every home in America. About 83 percent of Americans have reduced energy and water usage in the home, according to a 2000 Gallup poll. As these practices become ever more prevalent, a growing segment of the population is beginning to see the value in environmentally-sound development. Companies that heed this early eco-friendly message, stand to benefit enormously. "All homes will one day be green," says David Johnston, author of Building Green in a Black and White World, and president of What's Working, a homebuilding consultancy. "It makes too much sense for it not to happen."

In many ways, the green building movement is now entering an adolescent phase, and is poised for a big growth spurt. The first organized green building program began in 1991 in Austin, Texas. Today, there are 16, including the Denver Built Green program, which certified 3,000 homes in 1999. The National Association of Homebuilders has sponsored a national Green Building conference for the past two years, which draws some 600 attendees. A third conference is planned for March in Seattle. But more important, consumers are unmistakably interested in making their homes ecologically sound and reaping the many benefits that accompany that ethic. "Green homes are definitely on the radar screens of consumers," says Christine Ervin, CEO of the Green Building Council. "Within five years, many more people will be aware of the comfort and affordability of green homes, and it'll be in the interest of builders in a very tight market to differentiate themselves with these features."

The potential market for green development is enormous. With the U.S. population growing by 37 million over the next 15 years, it is expected that about 1.5 million new homes will be built and furnished each year. And homebuilders are beginning to take note. Beazer Homes of Arizona, for example, one of the state's largest builders, is betting that environmental features will be high on buyers' wish lists. Last year, Beazer joined the Energy Star program, a partnership of the U.S. Department of Energy, the Environmental Protection Agency, homebuilders, and appliance manufacturers. As a member, Beazer has promised to build homes that are at least 30 percent more energy-efficient than standard Model Energy Code homes.

In return, Beazer can tout its Energy Star affiliation in its brochures, banners outside model homes, and through its sales force. While Joseph Thompson, president of the company, says he was motivated by the desire to "do the right thing," Gary Gustefson, senior vice president of purchasing and product development has a more business-minded rationale. "This is a competitive advantage for us and we want to capitalize on it fully," he declares. "The beauty of green building is that it can often be both ecologically and economically beneficial."

When it comes to doing the right thing, however, marketers should keep in mind that consumers who go green in the home usually do so for some green in the pocketbook. "Our customers are usually most interested in the monthly utility savings in an Energy Star home, and the environmental benefits are secondary," says Thompson. In a 2000 survey by Cahners Residential Group, 39 percent of respondents chose reduced monthly costs as one of the best benefits of green building, while 33 percent chose reduced environmental impact. And for those buyers who are keen to do their part for the planet, Beazer salespeople can hype those aspects as well. After all, you don't have to be Ralph Nader to appreciate the fact that the average home produces more pollution than the average automobile in a year, and that energy efficiency in the home reduces those emissions.