If you flip through any of the broadcast news channels or publications these days, you undoubtedly will be greeted with a barrage of headlines surrounding the current state of the U.S. economy. (For those of you who haven’t been paying attention, it’s not good.) Terms like “financial bailout,” “recession,” “inflation,” and “the worst financial crisis since the great depression,” do anything but conjure pleasant images in the minds of Americans and, unfortunately, they now dominate our daily news.
Yes, times are tough, and the constant media coverage seems to amplify the uncertainty we all feel, but are things really that bad for us as real estate professionals? I’m going to propose that there is a silver lining to this dark cloud. The bright spot in this dark time is the enduring stability of green building.
A study released this summer by McGraw-Hill Construction and the U.S. Green Building Council (USGBC) found that over the past three years more than 330,000 “market rate” homes with green features were built, making green building a $36 billion per year industry. Of that number of homes, an estimated 60,000 earned third-party property certifications through LEED or another certification program.
The study also surveyed existing owners of green-certified properties in an effort to gauge their attitudes about their homes. An overwhelming 83 percent of respondents stated that their new green home will lower operating costs. Seventy percent of those surveyed said that they would be “more” or “much more” inclined to buy a green home over a conventional home in a down market like the one we face today. The study also found that 78 percent of lower-income consumers (those who are most affected by a market downturn) would be more inclined to purchase a green home.
While these numbers paint an optimistic picture for green buildings, a cynic might point out that the findings were released before today’s economic meltdown had completely matured. Now that we more fully understand the gravity of our economic woes, is green building really as strong as this summer’s study reported? Or are LEED and other property ratings destined to go the way of the Starbucks® Venti Triple Mocha Latte—a luxury consumers might have to do without until the economy improves?
Michelle Moore, senior vice president for policy and public affairs at USGBC, doesn’t think so. “So far, we haven’t seen any slow down,” Moore said. “Our green buildings numbers are really strong, our membership numbers remain strong. In fact, we’re at record levels across the board, from registrations and certifications of projects to the number of people taking the LEED AP test. They’re all way up.”
At the Greenbuild conference in Boston this month, Nancy Floyd, founder of the clean tech venture capital firm Nth Power, echoed Moore’s sentiments. “The economic downturn will actually be good for this sector,” Floyd said, “because the market meltdown is accelerating innovation. There are opportunities now because builders and decision-makers have more time to consider new ideas. There also is more competition among builders; so some will differentiate by adopting green building products and practices.”
So, if more and more green buildings are being built, and consumers are increasingly satisfied with green buildings, the logical conclusion is that qualified Realtors should have more opportunities to help facilitate these transactions. The fact of the matter remains that more green properties are being built every year, and the occupants of those buildings are increasingly satisfied with their purchase. Green building and remodeling is truly hitting critical mass, even in one of the most challenging economic times of our generation. Someone is getting hired to sell these properties, and looking for someone with credentials and knowledge of Green Building. That’s why I’ve chosen to earn my Certified EcoBroker designation and the NAR Green Designation. If you’re looking for more information, give me a call!
