I received an email trumpeting "Charter Goes Green!" the other day. Skeptic that I am, I was doubtful. I've seen "going green" claims before...
Well, here's my analysis of the latest green claim by a major builder:
Good: They got involved with Energy Star (a federal energy efficiency program)
Not So Good: The marketing looks like generic facts about energy conservation from the government Energy Star materials.
Good: Having a large builder such as this promoting energy efficiency in homes will (probably) spur other builders to investigate.
(OK, that's all the good I can think of).
Not so Good: A company this big had the opportunity to REALLY lead in the development of actual green homes. Unfortunately, the truth is that this company is not building a green home now, nor have they that I'm aware of (and I would love to be corrected on this).
There's a BIG difference between getting a traditional-design home rated "energy star" and actually building a home using green principles. Just a few of the principles that any newbie to the field could let this builder know about:
- Site layout to promote passive solar radiation
- Home design to minimize excess square footage and encourage functional spaces
- Water management at the system level (not just "flow limiters" on faucets).
- Grey water reuse (for toilets, irrigation, exterior use)
- Active solar design to reduce/eliminate utility demand (gas, water & electric).
- Incorporation of recycled materials that reduce/eliminate offgassing and waste
- Use of new technologies in roofing, exterior finish and framing to reduce reliance on oil-based products, etc.
I could go on, but none of THESE aspects were trumpeted. The focus is all about recodifying stuff they're already doing (good things, by the way), to present the "going green" message which is so the rage right now.
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Really, I see three stages in the development of a true green home builder:
Stage 1: They're doing pretty much what they've always been doing but have been approached by some vendor reps who've sold them on some new materials, etc. The temptation to "greenwash" is very high and easily seen through by knowledgable homebuyers.
Stage 2: They decide as a company to do some research and seek out new building materials and practices and, to the degree to which $$ impact allow, make some fundamental changes in their traditional approach to homebuilding. The company marketing should reflect the thought process at the management level and the concrete steps being taken to incorporate green. It's important to note that knowledgeable homebuyers would still not consider this builder a "green homebuilder".
Stage 3: They make a commitment at the mission level to embark on a comprehensive re-evuation of their materials and practices, bring in progressive architects to guide them, and begin to envision totally different communities & dwellings. These builders (especially as they can point to completed projects) have the ability to market themselves as having "gone green" because they really have. The company culture has changed.
As you might imagine, there are a lot of Stage 1s and Stage 2s around, mostly somewhere between 1 and 2. These companies have to be honest with themselves and the knowledgable public and market themselves appropriately.
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Energy Star, while a good first step, is rapidly being eclipsed by more comprehensive building programs like Environments for Living. This builder should check out their consumer website and builder specs websites. Another great option is to get some key personnel set up as Certified Green Professionals through NAHB...
The Verdict:
What this builder is doing is building a high performance, well-built product that's not particularly progressive otherwise. A strong stage 1, perhaps.
Let's see how far they're willing to take this journey.
Jeff. I believe we'll see more and more of these improvements when the economy improves. We have one builder in the area offering a "green package" for an extra 6% or so.
Recently, one of my favorite builders, KHovanian incorporated a number of "green" processes and materials in an existing community. I was really impressed. I have one buyer under construction there. No extra charge for the new features.
Trumpeting and doing green are two different things. But Advertising has always been about the spin
Jeff, I have seen so many companies jumping on the "green bandwagon" without doing any research and finding out the details.
I tell my clients to please do their homework and research the company and information before entering any contract.
Bettina
I am seeing more and more green apartment buildings going up, especially in the Denver area. Figures - in an economy like this, people may be afraid to even try applying for a loan and would rather wait it out by renting. It might be a more profitable business model to offer renters a green apartment instead of building and selling a green home?
Good post Jeff. I see many companies not just builders doing a little greenwash. The consumer can tell when a company has truly gone green. Kermit said it best, "It's not easy being green" lol.
Nice feature! You make some excellent points. I am also getting tired of the "greenwash" that everyone is stroking onto their products with a very wide brush. If a consumer really wants a green or energy efficient home, they need to do their homework and learn about the process and work with a builder who's heart is into it, not just their PR department.
Hi Jeff -- Great outline and I hope there is some non-partisan, industry-group watchdog out there evaluating companies and vendors claims. I hope it doesn't get exploited as it defeats the entire purpose.
Transparency and verification
Trust but verify -- as the saying goes.
HI Jeff. Probably in this case they are doing the green thing more about promoting themselves in this category rather than really working it like you said from the design up front.
You are so right. Energy Star alone does not make you green, especially if you are building a 4000SF home. Green is more than a marketing ploy. I really learned alot from the EcoBroker designation. Your post is timely and factual.
Hey Jeff, looks like it was worth writing. ;0) Congrats on the star. Good talking to you today.
I hope this builder continues to raise the bar for everyone else. Keep us posted on how it goes.
This is a great post and a valid analysis. It is good to know the difference between those who are at stages 1 and 2 and those who have made it to stage 3.
It is interesting to me to see various claims of Green - luckily many are very good, but I know of one development that actually says "built Green" and they are most definitely not. Helps to get a Realtor who can decipher the code:) Great write up!
I laugh when I see other builders advertise their "GREAT GREEN ENERGY EFFICIENT STANDARDS" and then compare them to my normal standards and my standards are better than advertised green standards.
I have not had one client ask about green building. Even though I am a member of the energy star program, have built passive solar homes and sell and install solar hot waters. I'm just not convinced that the consumer demand for green is actually out there. So far, I see everyone pushing it in their advertising but I think consumers care about the green in their wallet first and don't really understand what green is at this point because the advertising out there is not really telling them or is just confusing them.
Jeff,
The consumer has to be careful when looking into "green building." It's very tempting for builders to just advertise about their green features and not really carry out the true mission. Some federal standards should be written about it.
Hey Jeff,
We have some builders who do really well with the Green aspect of construction here in Utah.
-Lisa
Great Blog .. I love reading the feature blogs at the end of a long day.. Happy Easter
So what's your take on the EcoBroker designation? http://www.austininstitute.com/ecobroker
Would it be the "Good" or "Not so Good?"
For me, it depends. However, there are major distinctions in green building. Most recently the LEED certification standards have changed to take into account regional characteristics. For example, water conservatoins measures in the South will carry more weight than in the NE.
Here's a good article about the changes from a couple of months ago:
http://portland.bizjournals.com/portland/stories/2009/02/16/focus3.html
Green can be good... Always good to see things to better the environment
Green technologies have been around for many years. I just happy it's finally cool enough to talk about and more and more are engaging the subject.
Jeff, Great post, I'm looking to start Green Projects in central New Jersey, I have the land, but not the people, any ideas.
Jeff - Great post! It's frustrating for those builders that are ACTUALLY incorporating green practices in their businesses and homes. This doesn't just include what they actually build, but how they run the jobsite and their companies as well. Wondering if the advertising was even on recycled paper? Probably not.
Hey Jeff,
Without any expertise in this area, I have no opinion, so I'll just say hello and trust yours.
Regards,
Bob
Lenn, thanks for the comment. It's good to see builders like KHov offering upgrades without upgrading the price.
Here's a perfect example of another PA builder experimenting with the NAHB "Green Building" program. I wonder if NAHB has played a part in this, by mixing builders up between "high-performance" and "green". As this builder even says aloud, he found that he got a "bronze rating" without doing anything different.
Another point on this article - the builder had no takers for his "gold" rating home program in a box-home development in a Lancaster suburb...and I would submit that knowledgeable buyers would not even consider such a neighborhood anyway for many reasons.
Thanks for all the great comments, by the way!
"So far, I see everyone pushing it in their advertising but I think consumers care about the green in their wallet first and don't really understand what green is at this point because the advertising out there is not really telling them or is just confusing them."
Great comment, Charles. Assuming that we have builders who are educated enough to talk intelligently about green building principles, how do we REALLY market?
Somebody's missing the boat somewhere, that much I'm sure of.
There seems to be a big buzz going around conerning "Green' building. How can we, as real estate agents, make a contribution to it?
Jeff , your welcome to take a 2.5 hour ride up to Pike County & I'll show you Pike County's 1st NAHB Green Building Program Gold Rated Home with a HERS Rating of 48 . I'm also at trim stage of my second NAHB Gold Level home . I think biggest problem is people think Energy Star & Green are one in the same . My friend & CGP Instructor , Michael Chandler , equates building to the 2006 IRC Code as a "D" in school - you meet the minimum requirements . He equates minimum Energy Star / Bronze Level Green ( 15% better than code ) with a "C" , Silver Level Green ( 30% better than code ) with a "B" , Gold Level ( 40% better than code ) with an "A" & above 50% as " Advanced Placement " . The other confusing part for most people is that Energy Efficiency is only one component of the Green System not THE component . It doesn't make alot of sense to put a Porsche engine in a Pinto ! Keepin' it Green !
Are you trying to say by buying only energy saving appliances, slapping them in the kitchen and utility room doesn't make it a green building... There goes my idea of being the 70s ranch green Realtor.
Todd , at least Energy Star Appliances is a small start ! Thank God they still don't come in Avocado Green , Harvest Gold or Burnt Orange circa 1970's ! Keepin' it Green !
Ed, thanks for your excellent response. It deserves a special mention, because you're clearly on the right track! On the other hand, since virtually every appliance is energy efficient these days, I don't think (Todd) that they qualifiy as much of anything green-wise anymore - they're "standard equipment".
Hi Jeff,
As an EcoBroker, as well as a HERS rater, LEED AP, LEED-H field agent, and Green rater with the Florida Green Building Coalition, I'm seeing exactly what you describe out there. I like the three categories that you have broken out here... the only thing I would say is that ENERGY STAR alone is a huge improvement over code built home. And while i agree that it is not all the way there, it is a very important component of any green certification.
That said, my builders that are doing only ENERGY STAR are not coming close to the quality of homes for my LEED builders - NAHB falls somewhere inbetween local green standards and LEED in terms of quality and rigor of certification scheme.
The other important point is that builders that I have worked with over time tend to get further and further up your scale of green - so a builder that is building simply energy star to start with, may now be reaching DOE Builders Challenge for energy efficiency, and starting to take on FGBC, NAHB or LEED certifications on top of it. The one thing that all builders I work with have said, is that they are noticing a big difference in interest in their certified homes over non-certified.
Alex - great comment and I appreciate your dedication to get certified. Even better, I'm glad to see that my observations are fairly accurate. I also agree with you about energy star homes being an improvement.
Jeff - As with most other products and industries today, there seems to be plenty of "greenwashing" going on in the building industry lately.
I, for the most part, agree with Charles that customers are more into the green in their wallet and if they are willing to spend on green features they tend to focus on energy efficiency rather than recycling, sustainablility, etc.
But, as the trend to Green building continues to become more popular and customers become more knowledgeable, it is the builders that dedicated themselves to becoming true Green professionals through education, certification, etc, that will be at the forefront of this growing market segment.
Jeff,
I find that green has become an abused buzzword that everyone is using and it can cover anything from windows to solar panels.
And energy star rated homes are now calling themselvers green, though what they really are is energy efficient.
Not that I can really define green because it is not a certification but slang. IMHO is the job of eco real estate professionals to help people identify the right sustainable professional and then see that their clients will actually be getting what they want (with contracts and auditors) If a buyer wants recycled materials they will probably not get in an EnergyStar home. These training programs are a beginning but there is much more to learn
Thanks so much for the great analyis of stagers for developers going green. Certainly there are a lot of Stage 1 and 2'ers out there. To see a great example of a Stage 3 developer/project, take a look at www.1411-1413Seventh.com, a two-unit development in Berkeley, CA. As a green real estate company, we were quite proud to list the homes and even prouder to show off the wonderful features, including many of those you listed. It's very inspiring!
Jeff, you are right on target with all your assessments. The community I represent went officially green about a year ago, and doing research found that other then LEED and a couple other certification programs we wouldn't have to change anything to reach the best certification level, sad but true. The builder continually upgrades what is part of the standard green package when products reach a price point that makes economic sense to the customer. While we would love to build all our homes to platinum, as you said people still look at the bottom line so we offer the more expensive items with long term paybacks like solar, wind, etc. as options. For the entry level homes it is a real balancing act to provide as green a home as possible without pricing it out of reach of the first time buyers. One thing people can ask when talking to a builder to get a good feel for weather they are green washing or not would be "what HERS and E-scale scores do your homes get?" these numbers should be the same, under 100, & to be an ENERGY STAR home would have to be below 85.
There is so much marketing hype around all things green right now--real estate included--that it is hard to be sure how a given building will actuall perform. The only way to really know what you're getting is to get out and look under the hood as our friend Ross Perot would say. Of course, that is completely unrealistic which means, unfortunately, that most people rely on the marketing hype as their primary source of information.
Solution: I believe we need a national standard that will rank the building or home's performance. LEED is a good start but it is too strict in some areas and not very user friendly for home buyers. I think Energy Star has the right idea but they need to develop it a little further and offer more tiered performance characterizations. I'm sure we'll get a national standard eventually, but I expect we'll probably have some kind of a standards war before any one in particular is adopted nationwide. Until then, when it comes to buying and selling sustainable real estate we'll need to call out the experts from time to time to take a look under the hood and see what's up.