Sustainable Buildings and The Economy
We all know that the economy is in bad shape and that the prospective for new construction starts is dim. So what exactly does this mean for the future of green building here in the United States and across the world? Here in the United States there is an increasing trend towards being "greener" and more eco-conscious, which means that many individuals are willing to pay a premium for green features. This willingness of American consumers to pay a premium for green design and construction means that builders have an incentive to build these types of structures. However, a recent article in an Israeli paper Haaretz suggests that green buildings do not carry the same premium abroad.
"I don't want to be the one to tell you," said one apartment purchaser on an Internet forum, "but as someone who has already bought an apartment in the Kfar Sava Hayeroka neighborhood ("Green Kfar Sava"), and I believe I represent the opinion of 90% of the purchasers, it doesn't matter if there is special garbage collection or solar-powered lighting. The reason people buy in the neighborhood when it comes down to it is location, prestige and a good price. You won't find 'greens' among us."
"A contractor would prefer to build a large, spacious lobby or a pool in the building, so the benefit from an upgrade will be visible and the customer will pay accordingly," said Yisrael Kurtz, an urban economic consultant specializing in eco-friendly construction who is also one of the managers of Geo-Green, a subsidiary of the Geocartography Knowledge Group polling and research firm. "In eco-friendly construction, the contractor doesn't know what he will get out of it and if he can charge more, which is a major hurdle for builders in Israel and abroad."
"Currently there is uncertainty and ignorance among contractors and consumers on the subject," Kurtz said. "Therefore it is impossible to conclusively determine the value of a 'green' apartment in Israel. At the Kfar Sava Yeroka project, for example, the apartments are selling for 10% more than second-hand units in the center of the city, but it's possible the higher prices are not the result of 'green' construction but because of high demand for the location and for the project as a result of the lack of new projects in the city."
What I found most interesting is the fact that the article suggests that consumers and contractors are ignorant on the subject of green building. As much as I criticize LEED and the USGBC for their lack of leadership on the energy performance front they have done a greater good for the green building movement here in the United States by educating the public and the building trades about the benefits of green building.
