LEED Canada For Homes Offers Market Opportunities For Builders


February 25, 2009

It's been said that people think about the environment more during thriving, strong economies, and then it falls off the public consciousness during softer economic periods.

Perhaps it's the new sense of opportunity and optimism that people around the world are feeling with the new Obama administration in the U.S., or an increasing global focus on finding new ways to conserve energy while developing new, clean sources. During this current slump, the environment appears to be remaining on the agenda.

According to Natural Resources Canada, buildings account for about 30 percent of this country's overall greenhouse gas emissions. Increasing the efficiency of buildings and reducing their environmental impact, then, is one climate change solution that is quite straightforward.

When it was first introduced in 2005 to Canadian developers of new commercial and institutional buildings, LEED (Leadership in Energy and Environmental Design) certification offered a solution to climate change, while giving owners and tenants all the benefits a high performance green building provides. As of this spring with the introduction of LEED Canada for Homes, there is a LEED solution for residential builders.

LEED Canada for Homes provides the same high performance benefits to homebuilders and homeowners as the LEED tools aimed at the commercial sector. Significant improvements in energy and water efficiency, higher occupant comfort and a lower cost of operation are among the features of LEED-certified buildings- homes?.

LEED-certified homes are not just about giving homeowners an opportunity to reduce costs alongside their carbon footprints, however; they are about high performance, quality and durability too.

LEED homes are about providing long term value, which in a constrained economy, is even more desirable to today's homebuyer. People interested in LEED-certified homes view their value as a hedge against future volatility, created by not only rising energy prices but also an uncertain real estate market.

In terms of energy efficiency alone, LEED homes allow homeowners to tap into and stretch the benefits of conservation incentive programs that are in place with many utilities across Canada. Utility companies in B.C., Manitoba, Ontario, Quebec and Yukon all feature a two-tiered pricing structure for electricity, giving residential customers a reduced rate for the first block of electricity they consume during a given period. Some utilities also offer time of use pricing, where a customer can spend less money on energy during off-peak hours.

Although Canada may seem to be a place where water is abundant, it is a precious resource that will only increase in value, particularly as more markets in the U.S. experience water shortages. LEED homes can use as much as 45 percent less water outside and 70 percent less water inside the home, by taking advantage of water management solutions like low-flow fixtures, greywater reuse systems, and rainwater harvesting.

The green building features in a LEED-certified home will become more mainstream, and new home buyers will begin to demand these details, viewing them not as "extras", but as standard offerings in a well-designed and -constructed home.

Durable, high performance homes are also a hedge against future real estate prices. A LEED home retains its value more than a traditional home because it can provide the homeowner with tangible monetary rewards through a reduction in energy and water costs. In parallel with those quantitative savings, LEED homes provide qualitative benefits in the form of a lower environmental impact, enhanced occupant comfort and health, and the pride associated with owning and living in a lower impact home.

As consumers become more savvy about "green" and "eco" claims, LEED homes also mitigate against "greenwashing" fears. LEED Canada for Homes is a national program, that also involves third-party certification, rather than self-certification. The builder of a LEED home is aligning itself with a well-established, recognized brand that has real value in the eyes of the market. That brand equity extends to the owner, who is assured he is buying a home that is independently verified to be high performance, durable and lower impact.

LEED Canada for Homes is delivered to the market currently through seven LEED Canada for Homes Providers; organizations based across the country that are experts in green homebuilding and in the distinctiveness of their respective local markets.

A builder interested in pursuing a LEED residential project - whether a one-off single family home, a multi-unit development or an entire residential neighbourhood - will gain guidance from their local provider through the certification process, and will gain advice and expertise on green building approaches and methodologies.

In today's challenging residential real estate market, builders who sign onto the LEED Canada for Homes certification program set themselves apart in the eyes of increasingly knowledgeable and value-conscious buyers. A home builder's alignment with the LEED program can signal to the market that they are innovative and visionary, and concerned with quality, durability and performance. All attractive qualities in a competitive market.

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