It's a reality we all have to come to terms with: Neither oil nor natural gas prices are likely to come down any time soon. World demand for oil isn't abating (read China and India). Hurricane Katrina fallout is plaguing the pumps, and as I write this Hurricane Ike is chewing up the Gulf and shutting down more refineries! And with monthly energy bills and relentlessly thirsty cars reminding us of our escalating cost of living, there's one message consumers are ripe for today: saving money on their home utility costs.
Home Builders across the nation are turning to what appears to be not-just-another-marketing-scheme to sell homes, but a real-life way of doing business - building green. For those that have not yet heard the expression, green building is the practice of using environmentally sound building techniques that conserve resources and provide for healthier living. The term "green building" generally refers to construction which incorporates some or all of the following: energy conservation, resource conservation, waste reduction, preservation of indoor air quality, and promotion of alternative means of transportation. The goal? Buildings that are less expensive to operate, healthier to inhabit, more durable, and better for the environment.
Clark Wilson in Austin, Texas, past President and CEO of Clark Wilson Homes, sold his company several years ago to Capital Pacific Homes, but recently re-emerged under the new banner of Wilson Family Communities. The company web site is conspicuously named www.greenbuildersinc.com, and guess what their "claim-to-fame" is - quote: "Green BuildersTM is one of the nation's largest builders and developers of green homes and green communities. We make it a priority to fully embrace sustainable building practices and to use earth-friendly products and materials whenever possible. Green Builders applies these practices in the earliest stages of development, yielding the greatest results in building green homes." Although not the only Builder in Austin building green, they are the first to 100% market their company as such.
A new survey of home builders released by Lowe's at the recent 2006 International Builders' Show demonstrates that one of the biggest trends in home building is a strong focus on energy-efficient materials and products. In fact, nine out of ten builders surveyed say they are incorporating energy-saving products into new homes, at all price levels.
Even the Fed's are getting involved. Fannie Mae's energy-efficient mortgage program, available for loans under $359,650, lets borrowers qualify for a bigger loan than they might otherwise and allows energy improvements to be financed-up to 15 percent of the appraised value of an existing home and up to a 5 percent equity credit on new construction. Under the program, an independent energy rater recommends energy-efficient improvements and itemizes what those changes will save the buyer.
A similar program from FHA allows buyers to borrow up to 5 percent of the appraised value of the home for improvements ranging from $4,000 to $8,000. Borrowers' housing payments can be 33 percent of their income instead of the typical 31 percent, and the total debt ratio is 45 percent, up from 43 percent.
Joel Wiese, a manager with mortgage lender Indigo Financial Group in Lansing, Mich., says 70 percent of his business nationwide involves energy-efficient mortgages.
And Sweden? Check out this headline: ▲Sweden Plans to be Oil-free by 2020
Feb. 8, 2006 - Sweden is to take the biggest energy step of any advanced western economy by trying to wean itself off oil completely within 15 years - without building a new generation of nuclear power stations. The attempt by the country of 9 million people to become practically oil-free is being planned by a committee of industrialists, academics, farmers, car makers, civil servants and others. Energy ministry officials in Sweden said they expected the oil committee to recommend further development of biofuels derived from its massive forests, and expansion of other renewable energies such as wind and wave power. The Guardian
And Canada? ▲City of Toronto Leads North America with New Green Roof Policy
Feb. 6, 2006 - The Toronto City Council has adopted the first comprehensive set of green roof policies in North America. In addition to reducing energy consumption and smog, research supporting the new policy found that 8 percent coverage of existing rooftops with extensive green roofs would generate over $300 million in initial cost savings in areas such as stormwater management, combined sewer overflow reduction, building energy savings, and urban heat island reductions. Operational cost savings for the city from this level of coverage were calculated at approximately $40 million per year. GreenBiz.com
And Walgreens? ▲Walgreens to Harness Power of the Sun
Jan. 12, 2006 - Drugstore giant Walgreens announced plans to install solar electric systems in 96 stores and two distribution centers in California and 16 stores in New Jersey. Solar roof tiles will enable each facility to generate between 20 percent and 50 percent of its own electricity on site. The new systems will generate more than 13.8 million kilowatt-hours per year, making this the largest solar project ever completed in the United States. Solarbuzz.com
This concept is a snowball going downhill - it will only get bigger as it gains momentum. For some developers, green home building is the long haul, the inevitable future of the industry. The green industry's growth will likely make it a more competitive -- and perhaps cheaper -- field in the next decade as more companies jump into the fray. And the cheaper it becomes, the more customers may buy into it.
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Phil,
Very well done, I thought this was a well thought out article. Green building is no longer a "fad", not to mention the governement is providing grants to puch this along in some states, even low income housing, as well as green communities.
I thought this was interesting "A new survey of home builders released by Lowe's at the recent 2006 International Builders' Show" Again, this is becoming mainstream. I developed a site devoted to Green Communities in the US for this very purpose, I hope in some small way this will help bring people, and green homes together. It's still getting communities added daily, but there are some beautiful eco communities in this country!
Great read Phil!