Survey: Cost weighs on green purchases

A recent member survey from the National Association of Home Builders (NAHB) indicates that even though home buyers want more efficient homes, they are unwilling to pay much more for a “green” home.

“Although we are seeing significant interest in green building, cost effectiveness is clearly a key concern among home buyers,” said NAHB chairman Joe Robson, a home builder and developer in Tulsa, Okla. “Builders said that among buyers who are willing to pay more for green features, more than half -- 57% -- are unlikely to pay more than an additional 2%.”

According to the survey, preferences for specific green techniques are regional. Builders in the West reported greater interest in water efficiency than builders in other areas. The Northeast, where the fewest new homes are built, showed high interest in homes constructed with recycled materials. Conversely, the South, which has the highest number of housing starts, showed low interest.

Nationwide, 11% of builders say their customers ask about environmentally friendly features, according to the survey. “Fortunately, our members are increasingly taking the initiative to educate the home-buying public about the benefits of green construction,” Robson said.

“Whenever Congress considers how to encourage more energy-efficient construction, it must keep affordability in mind -- and look for ways to incentivize these changes not only in new homes, but even more importantly in the nation’s much more substantial and inefficient existing housing stock,” Robson said.

In related news, the NAHB National Green Building Program continues to grow. More than 400 homes, developments and remodeling projects have been certified by the NAHB Research Center. Of those projects, 43 have been certified to the National Green Building Standard, approved earlier this year by the American National Standards Institute.