Building green is on the rise
More New Zealanders are buying sustainable homes, and experts say the trend will pick up pace as these homes gain greater visibility. Miriam Bell reports.
Green building has been around for decades, but rising concerns about environmental issues mean sustainability is now ‘‘an undeniable megatrend in global real estate’’, a Real Estate Institute report says.
This translates to widespread government regulations and incentives to encourage sustainable practices, rising demand for green investments, and the normalisation of what used to be niche buyer expectations, such as solar power.
The report cites United States research which shows most buyers prefer to go green when given the option. It found 60% would incorporate passive solar design into their homes, and 66% would opt for durable materials.
It also found buyers are willing to invest in features that help lower their utility bills. The average buyer is willing to pay as much as US$9292 (NZ$14,000) more upfront for a home to save $1000 annually on utility costs.
In New Zealand, the move towards sustainable homes is gaining in popularity, too.
Green Building Council chief executive Andrew Eagles says that five years ago between 400 and 500 new home builds went through the Homestar system, which rates the health, efficiency, and sustainability of homes.
But close to 6000 homes will have gone through it this financial year, he says. ‘‘Not only is that a 12% increase in four years, but with about 49,000 consents issued last year it equates to more than 12% of the new homes being built.’’
If those figures are looked at as a trend, the council is expecting the percentage of Homestar rated homes will increase to about 20% of the newbuild market over the next few years, he says.
One of the drivers behind this is an increase in the numbers of builders and developers who have signed up to the system and now work to its standards.
Simplicity Living and Ockham Residential build all their homes to a six or higher rating, and all Kiwi Property’s homes are rated at seven or higher. All homes built through Kainga Ora, whether social
housing or through its land development plans, must have a rating of six or higher.
Eagles says the visible use of sustainable practices and technology by such respected builders and developers will drive its widespread uptake, and further boost buyer demand.
‘‘The attraction for buyers is significant cost savings over time on things such as heating and power, as well as the increased comfort and wellbeing that comes from a healthier home. There is also the resale factor to consider. Overseas studies show there is a 3-6% uplift in the value of houses that are more energy efficient.’’
‘‘The council is expecting the percentage of Homestar-rated homes will increase to about 20% of the new-build market over the next few years.’’ Andrew Eagles Green Building Council chief executive
Bright Build co-owner Jenny Taylor says two groups of home buyers tend to be interested in sustainable homes: people who have lived in warm, dry, energyefficient homes, often overseas, and people who have a particular interest in environmentalism and sustainability.
‘‘These buyers have done their research, and they know the financial and health advantages that come with these homes. The problem is that, overall, there are still too few builders and designers qualified in this area, and that is limiting growth.’’
Her company, which is a certified passive home builder, has seen a noticeable increase in inquiries around the core components involved in high performance, energy-efficient buildings.
‘‘But many people want durable, energy-efficient houses, so they will incorporate different ingredients without going fully passive.’’
They range from doubleglazing and thermally broken joinery to mechanical air ventilation systems and passive design principles. They are best suited to new builds, as they are the technology inside the walls, so it is harder to adequately retrofit an existing building, Taylor says.
‘‘That’s why much of the interest in sustainable homes currently comes from people building them rather than buying them.
‘‘But there are independent assessors for these features, so when they are on-sold, a prospective buyer can be assured the house will do what it is said to do. That is attractive for a new owner looking for cost savings.’’
More sustainable homes being built means more are in the housing pool which increases the options for future buyers.
It is also possible to futureproof existing homes, to a point. This involves measures such as improving insulation, getting double-glazed windows, setting up solar power capacity and installing smart home technology.
Doing so does add value to a property. As an example, Harrisons Solar partnered with Homes.co.nz to analyse more than 2000 homes which had installed one of its solar power systems. It found that, on average, these homes were selling for 4.4%, or $35,000, more than comparable properties nearby.
And buyer demand for sustainable homes, or ones with green features, is on the rise. Trade Me Property sales director Gavin Lloyd says there has been an increase in the eco-friendly keywords used in property listings in recent years.
‘‘The number of listings that include eco-friendly keywords, such as ‘EV charging’, ‘EV plug’, ‘solar panels’ and ‘energy efficient’, rose by 20% from 2019 to 2020, and by another 14% from 2020 to 2021.’’
While sustainable homes are increasing in popularity, the upfront costs involved remain a limiting issue for many, Master Builders Association chief executive David Kelly says.
‘‘People might realise that, over time, they get their money back in cost savings, but it is those initial costs that determine how far people are willing to go for a sustainable home.
‘‘With construction costs up significantly anyway, any additional costs become a barrier.’’
Sustainable building is still a niche market in New Zealand, and more education and information about it needs to be made available to builders and developers, as well as buyers, before it really takes off, he says.
But Bayleys head of insights and data Chris Farhi says the trend is likely to mirror that seen in commercial property, where a Greenstar rating was initially niche but became more mainstream over time as prominent buildings modelled it.
‘‘The more Homestar ratings and sustainable practices are used in large development projects, the more there will be an integration of the features into standard building work, and aspects of it will become the norm.’’
Currently, sustainable homes remain a work in progress, but as consumer awareness increases, demand for them is likely to as well, he says.
‘‘A house is a big investment though, and that means the top features for most buyers will always be location and pricing.’’