Green Real Estate

Environmental issues are a growing concern among Canadians. According to a January 2007 report by the Strategic Counsel, a market research firm, Canadians ranked “environmental issues” as the number two issue facing Canada.

The following information has been adopted from the British Columbia Real Estate Association.  For more information, click here.

What does green mean?

“Green” is a popular way to describe “environmental friendliness” and often the social responsibility associated with it. In the company of “eco” and “sustainable*,” “green” is in danger of trying to say too much without proper definition and qualification.

The word organic went through a similar evolution in the food industry and edged out “natural” when it became firmly rooted, thanks to certification standards.

”Green” became linked with environmentalism nearly 30 years ago through high-profile campaigns and media coverage of vanishing rainforests and holes in the ozone layer. Some of the word’s popularity can most likely be attributed to John Elkington’s 1980s book, The Green Consumer Guide, which has sold more than a million copies.

Although the promise of a mass green consumer movement didn’t materialize in the late 20th century, dedicated Greens stuck with it. A flurry of unsubstantiated eco-labels and green claims by the early 1990s was met with cynicism over “green-washing” and eroded the confidence of most mainstream consumers. Looking back, the low-level understanding consumers had of the increasingly complex environmental problems may have been a factor.

While a solid definition of “green” is hard to identify, from a REALTOR®’s perspective, the concepts of green homes, buildings and real estate practice will help shape what green means.

What is a greener home?

A greener home has a lesser impact on the environment in its construction and/or operation than its conventional cousin by featuring a combination of the following features in varying degrees:

• Efficient use of energy, water, space and materials
• Provides a healthy habitat for its residents and neighbours
• Uses environmentally sustainable materials
• Has minimal impact on the building site and surrounding area
  

What are the benefits of a greener home?

The difference between green and conventional buildings is that green buildings offer healthier and more comfortable interior spaces, and include measures to reduce a building’s ecological footprint.

Energy, water and resource efficiency – This reduces pressure on scarce energy resources and decreases the greenhouse gas emissions implicated in climate change. Efficiency also applies to waste reduction and recycling that alleviates pollution and eases pressure on landfill sites. Greater efficiencies also lead to cost savings.

Energy use: The construction and operation of buildings consumes over 60% of the electricity and 35% of primary energy used in the US, according to the US Green Building Council.

Health – A healthy house benefits its occupants and the environment. It responds to evolving household needs using a simple, sensible approach to construction, renovation and day-to-day operations.

Emissions: The energy use associated with buildings accounts for about 30% of total greenhouse gas emissions in the US. - US Green Building Council

Environmentally friendly design – By incorporating green into the design process, construction and retrofits can dramatically reduce their construction and operating environmental impact.

Materials consumption: Worldwide, buildings consume 25% of the world’s harvested wood and utilize 40% of all materials produced in the world. New home construction consumes 40% of all the lumber and plywood used in the US.

The supply chain of a modest 1,700 square foot home requires over an acre of forest to be cut down and generates 7,000 pounds of solid waste; the cement in the foundation alone contributes about 10 tons of carbon dioxide (CO2, a greenhouse gas) to the atmosphere. - US Green Building Council

Livable communities – Greener buildings can contribute to greener communities by having lower water demands and producing less wastewater than conventional buildings, thus reducing demand on municipal services. See the greener community page for more benefits and information.

Cost and value – According to the McGraw-Hill Construction 2006 Green Building SmartMarket Report, homeowners believe green building will show decreases in operating costs between 8 and 9% across the industry and result in average increases in building values of around 7.5%, with an expected 6.6% improvement in return on investment.

More information on costs is available in The Costs and Financial Benefits of Green Buildings, presented to the California Sustainable Building Task Force in October 2003.

More information on value is available from the Royal Institution of Chartered Surveyors in an article entitled “Green Value - green buildings good for business.”

The Canadian Green Building Council offers a report that outlines the benefits of green buildings in Canada. This Business Case for Green Buildings also addresses the challenges and barriers facing the green building industry, and provides information on the growth of that industry in Canada.