Homebuilders Poised To Capture Different Kind Of Green? Not Quite Yet

A recent study of the nation’s largest publicly traded homebuilders finds that despite a rapidly emerging market for “green homes,” they have yet to fully embrace environmentally sustainable design and construction.

The study was released by Calvert Funds – one of the nation’s leaders in sustainable and responsible investing – and Boston College Institute for Responsible Investment.

Recent headlines trumpet historic lows for new home starts while homebuilders nationwide struggle to maintain the bottom line. With the green building industry seeing annual growth of as much as 30 percent, green building features for new homes present a clear opportunity for the homebuilding industry. One recent survey finds that homeowners are willing to pay a premium for greener and cleaner homes of $18,500 on average.

The survey of the 13 largest publicly traded U.S. homebuilders used four major “green” indicators: energy use; building-material use; water use; and land use. According to the report, “while every major homebuilder has incorporated some environmental and efficiency programs and products into some of their new homes, . . . the industry has a long way to go before any of the companies can truly claim to be addressing the risks and opportunities inherent in the environmental and climate change dilemmas.”

Visit Calvert Funds for a copy of the report. Much more about green building and sustainable design and construction practices can be found at the US Green Building Council’s LEED (Leadership in Energy and Environmental Design) site or the federal government’s Energy Star program.

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