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Big home builders could be greener, study finds


Cox News Service
Wednesday, May 07, 2008

Americans may be trying to live greener these days, but none of the nation's biggest home builders has fully embraced sustainable design or construction, according to a study released Tuesday.

Every major home builder offers some environmental and efficiency programs with at least some of their new homes, according to the study by investment company Calvert Group and the Boston College Institute for Responsible Investment.

However, "the largest publicly traded home builders are waiting for someone else to take the lead," said David Wood, director of the Boston College institute.

Among the nation's 13 biggest home builders, the study ranked Atlanta-based Beazer Homes No. 7 for attention to environmentally sustainable design and construction. Miami-based Lennar Corp. is No. 5, while D.R. Horton Inc. of Fort Worth, Texas is tied with Michigan builder Pulte Homes Inc. for the No. 2 spot. Dallas-based Centex Corp. ranked No. 4.

The greenest builder in the country is Los Angeles-based KB Home, according to the study. KB Home ranked high partly because of its "myEarth" design program, which lets buyers choose environmental design elements; for offering only energy-efficient appliances, and for its use of alternative building materials.

Still, the study's authors said, KB Home and all big builders have a long way to go toward improving their environmental efforts.

They said builders could have a major impact in helping reduce greenhouse gases and address other environmental problems.

According to the study, houses account for 21 percent of the nation's energy use, 33 percent of timber use and 45 percent of all new land development. They consume nearly 11 percent of the nation's fresh water.

Like Calvert Group, many big investors have begun to consider environmental issues and sustainability more closely when they look for places to invest their money.At the same time, consumers are paying more attention to their homes' energy costs.

"I think it's hard to imagine a scenario where energy prices don't rise in the future," said Stu Dalheim, director of shareholder advocacy for Calvert Group. "That will be increasingly reflected in consumer interest in more efficient homes."

Led by small niche home builders, the green building industry is growing by as much as 30 percent a year despite the slump in the overall housing market. Surveys show that homeowners are willing to pay a premium of $18,500 on average for greener and cleaner homes, according to the study.

Wood, the Boston College researcher, said one of the reasons builders didn't pay more attention to environmental issues before was because the housing market was so hot that they didn't need — or have time — to do so.

Now that the housing business has gone cold, that may change, he said.

"In the short to intermediate term, green building may be one of the few bright spots in an otherwise extremely bleak landscape," Wood said.

Bob Keefe is a Washington correspondent for Cox Newspapers.

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