Cost Benefit
Building a house using healthy, sustainable practices is not only better for your health and the environment but is also proven to be a sound financial investment. Here are the financial benefits you will encounter:
Higher selling value: Last year the Northwest Multiple Listing Service (NWMLS) tracked the sale of environmentally certified homes and found that green homes certified by a third party sold for 10.55% premium on a square foot basis. Polls show that 2 out of 3 Canadians are willing to pay more for "greener" features in their homes. One of Natural Balance's current projects was appraised at a 15% higher value as a direct result of its green features and third party certification.
Lower operating costs: Using sustainable building technologies significantly lowers energy consumption, water use, waste, and overall maintenance. Energy savings generally range from 24-60%. Average water savings for indoor water consumption is approximately 30%, while outdoor consumption will range from 50-90%.
Higher rental and occupancy rates: Green homes can be of financial benefit for those who will be renting out their properties. The statistics show that green buildings have a 3.5% higher occupancy rate and 3% higher rental rates.
Incentives and subsidies: Various governmental and private incentive programs exist in B.C. and Canada that help to lower construction costs on sustainable homes. BC Hydro offers cash subsidies on ENERGY STAR appliances. The BC Government provides provincial tax exemptions on ENERGY STAR qualified windows, skylights, doors and side lights. Certain green homes qualify for incentives on mortgages, such as a 1.5% cash rebate from TD or a 10% discount on the cost of CMHC mortgage insurance.
Savings on health related issues: Healthier homes will contribute to lower spending on health related products. For example, a study in Alberta showed that students in naturally lit classrooms had 9 times less tooth decay due to the additional vitamin D from natural sunlight. This could mean hundreds or even thousands of dollars saved in dentist fees.
Higher In-House Productivity: Various studies have analyzed the relationship between indoor environment and productivity. These studies have shown that even small environmental changes can have significant impact on productivity. For example, one study showed an increase in productivity by 13% due to an increase in brightness from 1 to 20 foot-candles and a 15% to 20% percent increase in productivity with improved ventilation. Various studies have also shown that proper temperature control can increase productivity by up to 3%.
Reduced reliance on external infrastructure: Green homes rely less on external infrastructure for its energy and water use making it less vulnerable to external effects. Water use restrictions in place during the summer time in Vancouver could be costly to those homeowners with outdoor gardens who rely on regular watering from the tap. Green technology, such as rain water retention systems can alleviate that problem by providing the water necessary for the garden when no water is available.
Lower insurance costs: Various specialists agree that due to the technology used in green buildings, the insurance premiums are likely to go down for LEED certified homes as well as green homes in general.
