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Whether one takes climate change seriously or not, one truth stands tall for any home buyer – energy efficiency, resource conservation and healthy indoor air is becoming a must. But with the economy still unraveling and the cloud of uncertainty hanging over our heads, a question looms… Can green homes gain traction in our fragile housing market?
As you may be aware, Santa Clara County real estate market has been quite unpredictable. It went from four months of inventory into less than one month of inventory in one year and no one really knows what the future holds. Even some of the biggest market experts have been embarrassed and increasingly keep their Nostradamus like market predictions to themselves.
At the same time, for the past few years, we may have noticed a quiet revolution taking place in our hearts. Not only we are craving to live happier, healthier and more empowered lives, we are seeking friends and atmosphere that will support that earning. Also, with raising energy costs and ever growing health problems, many of us are looking for answers right where we sleep – our homes.
So what has kept more people from seeking out these energy efficient and often healthier homes? Mainly – the lack of awareness and price. We’ve been conditioned to think that everything green and organic come with an extra big price tag, and with a good reason! However, when it comes to homes it’s not always true.
Some new home builders who have built green home developments in San Jose claim that their homes are not more expensive than their non-green certified competition. The reason being is that builders are able to buy renewable energy systems like solar panels at bulk prices and receive incentives from PG&E and the state. In fact, smart builders can use fewer resources to build homes and save money on materials. This effectively helps developers pass the savings to the consumer.
Now if an older home has undergone a deep retrofit and was upgraded with energy saving systems like solar panels or solar water heater, it may indeed cost a bit more than regular homes. One must keep in mind though that here we must look at price vs. cost of ownership analysis. What do I mean? Well, imagine your home had a mortgage that is $100 higher than your neighbor’s but you were saving $150 in utility bills, would that be such a terrible predicament to be in?
One may say… but wait, some folks really go all out with their upgrades and “eco-chic” elements that they will never re-coup the costs. It’s true, but it’s also true with high end upgrades that have nothing to do with energy efficiency or sustainability.
As for the future of our real estate market and green homes, my crystal ball has nothing but beautiful images. Why? Because energy conserving homes not only produce less pollution but also because owning one will absolutely, most definitely make perfect financial sense.
Think about it, if you had a choice whether to buy a home that is more energy efficient, healthier for your kids, and conserves resources or a home that was built to minimum standards that had high utility bills, which would you choose? You see, once we are increasingly presented with this choice in the future, the decision will be as easy as popping a soap bubble.
Personally, I am thrilled to see more and more people considering the impact their homes have on the environment. In addition, something very profound is taking place during this economic turmoil – we’re shaping to be smarter consumers. We’re growing in wisdom that we must consider the true cost of owning “stuff”. This is why greener homes will set new standards of quality and resource management in the very near future.
More on Green Homes: http://SanJoseGreenHome.com
sites or magazines. Have you ever wondered what that really means? Are green home builders simply trying to ride the latest eco-fad or is there really some substance to the word “green” when it comes to homes? Why should we care anyways?
