Green Building Sweeps America, Except in Poor Areas
by Anonymous - May 28th, 2008
in
Remember this news: That among the 13 largest homebuilders in America, none are building green?
Well, if this new report from Frost & Sullivan (reg req'd) is to be believed, then they'd be wise to change course because the movement toward green construction is "inevitable."
And it's also hugely profitable -- even as the whole housing market is stuck in a slump.
According to the report, called "LEED and Beyond: Evolving Trends in Green & Intelligent Buildings in North America," the sector raked in $12 billion last year.
And that's just the beginning. The authors project that revenues will top $42 billion by 2015.
But the boom may have a dark side...
The US Green Building Council -- and its increasingly popular LEED certification (Leadership in Energy and Environmental Design) -- is helping to cement green building as a staple in American construction.
In fact, the study predicts that LEED buildings could soon make up 25 percent of all new construction in America.
And that's not necessarily a good thing -- if your poor.
LEED is the most stringent, top-notch green building standard on the planet. And it's also expensive. To get a LEED seal of approval costs up to $60,000 in some cases, VentureBeat reports.
And now that USGBC has entered the residential market with its neighborhood development program (LEED-ND), critics are starting to worry that affordable housing -- and its residents -- may be forgotten if municipalities adopt LEED standards as law.
Why?
One, the pure expense. Two, the LEED-ND standard, as drafted, doesn't reward participating developers for building affordable housing that embraces energy-efficient design -- at all.
If they do build low-income housing that's green, developers earn a mere four points out of 106 from USGBC. A hard sell for developers, given that payments on those properties must equal no more than 30% of a family's annual income.
Should USGBC create more incentives for affordable housing?
Probably.
But it's hard to knock the USGBC, given its giant role in America's green building boom.
And soon, competitors will follow with rival standards that are likely to drive down green building prices. And once America's top homebuilders dive head first into the market, they too could help shake things up for the better.
Moral of the story?
It's not easy be green.
And, at least for now, it's even harder if you're poor.
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