Archive for the ‘Green’ Category
How Does Real Estate Fit Into The Green Movement?
Posted by Sibet B Freides in Green, Marketing, Real Estate Trends on November 9th, 2010
A recent Advertising Age article asks the question, “Has Green Stopped Giving?”
While the answer the publication gives is more focused on house hold products, I think there are some distinct similarities with the housing market to discuss. It appears that consumers are starting to slightly abandon the idea of sustainable products for different reasons. There are three distinct skepticisms of green products as reported by Advertising Age. These include the idea that green alternatives are too expensive, they don’t work as well, and they aren’t really that much better for the environment. Each experienced a multiple point increase from 2008 surveys.
What does this mean for the housing market? While consumer attitudes are similar when it comes to sustainability, buying a home and buying detergent are two different things. While you may think that a sustainable lifestyle would encourage both, it doesn’t. The truth is that most sustainable homes will be bought with cost savings in mind. The three complaints listed above reinforce the need for tangible proof of energy savings, cost savings, and environmental benefits for new homes. If I decide to buy “green” dishwasher detergent I will be doing so with the idea of health and environmental consciousness in mind. I am not doing it to save money. This is the difference in the housing market. While buyers definitely want a healthy and environmentally friendly home, it really comes to the money saved on energy.
A big problem with sustainable packaging and their claims right now has a lot to do with lofty claims that can’t be measured. Consumers need to be shown exactly where they will be saving energy, saving money, and reducing emissions. A claim isn’t enough as most of these sustainable products come at a greater cost to consumers. Homebuilders must be able to stress both the environmental benefits and money saving benefits equally. This along with a credible seal of approval like LEED or EarthCraft certification are necessary in today’s and tomorrow’s markets.
Generation Y Leads The Way In Future Housing Trends
Posted by Sibet B Freides in Demographics, Green, Marketing, Real Estate Trends on October 20th, 2010
According to a recent Builderonline.com article, the recession and dragging housing market have changed the long-held housing trends and tastes for the extended future.
The article talks in-depth about the “Housing in American” panel that participated in ULI’s fall conference in Washington, D.C. To no surprise, the panel focused on the two largest demographics, the boomers and Generation Y. While they are both vast in size, one could shape the landscape of the housing market for years to come.
The recession has been hard on everyone but as the article points out, Generation Y will probably have the strongest and longest influence in the housing market. It’s the largest demographic our country has ever seen. It has massive buying potential but most are economically strained right now. With a high unemployment rate and student loans, most of Generation Y isn’t saving for a house down payment and their baby boomer parents aren’t in the best position to help as they’re trying to recover savings and figure out a way to retire.
Most signs point to a renter’s market, at least for Generation Y. The challenge now is to place them in areas they desire. Studies show that this young generation cares more about walkable homes than square footage. There is a strong focus on work-life balance among Generation Y and a close proximity to work is high on their list of desires.
In addition to Generation Y, the article also goes into detail about baby boomer trends and the future of the McMansion. It’s a great read and I highly recommend you give it a look.
The 2010 Ideal Living Home Represents The Future Of Sustainable Home Design
Posted by Sibet B Freides in Green, Marketing, Real Estate Sales, Real Estate Trends on October 14th, 2010
The 2010 Ideal Living Home at Achasta is the perfect case study when it comes to sustainable design.
The home features the latest and greatest in sustainable construction and interiors. While this is great and is always a strong selling point, these inclusions aren’t what make this home so unique. It’s the way the home utilizes future home building techniques without compromise.
What makes this home special is that its designers and builder were able to incorporate sustainable features and materials without losing the look and feel of the community. Known for its rustic charm and natural amenities, the Achasta community is located in the North Georgia Mountains where it has become a community staple in the town of Dahlonega.
When the Ideal Living Home was first planned, those involved understood the need for creating a sustainable home while maintaining the rustic charm of the community and the area. The finished product ended up being just that. From energy efficient HVACS to all natural counter tops and reclaimed hardwoods, the showhome successfully captures the elements of tomorrow’s sustainable design without compromising the rustic feel of the community.
This is important for future development. Sustainable features are a must for new home construction. While this is true, I think that it’s important that we don’t rush to let those features define our product. Sustainability should definitely be advertised but these features are becoming the standard and we still need to maintain an identity that makes our product unique. Achasta was able to do this seamlessly.
For more information about the 2010 Ideal Living Home visit their site at Achasta.com. You can also see a list of their vendors for the sustainable products used in the home’s construction and interior design.
Consumers Still Want Sustainable Homes
Posted by Sibet B Freides in Green, Marketing, Real Estate Trends on October 6th, 2010
A recent survey of architects shows that homeowners are increasingly looking for practical and space efficient floorplans instead of extravagant ones with single-purpose rooms.
According to a Builderonline.com article, the American Institute of Architects’ latest Home Design Trends Survey asked 300 architects about emerging preferences in design features among households and consumers. The results are not surprising as they continue to point towards a couple of already strong themes.
Home offices are still a strong interest among buyers as reported by 34% of surveyed architects. While the demand for these rooms has declined a little, experts believe that the demand will stay relatively high as the recession lingers. As far as specialty rooms go, home offices were the only ones that were in demand according to architects. Home gyms, game rooms, and home theaters have decreased in popularity as consumers look to buy more space-efficient homes.
Home buyers continue to question architects about resource-efficient and cost saving products. This includes questions pertaining to energy-efficient, low-maintenance, and water-saving products. Half of all surveyed architects reported a strong interest among home buyers for products in these categories including tank-less water heaters and water reclamation systems.
For now it seems that a demand for resource and space efficiency is holding strong as we ride out the recession. A question of the future still remains though. Will these building trends carry over to a post-recession world or will we return to our upsized home desires? There are conflicting opinions but it’s hard to imagine consumers totally reverting to their old ways now that they are aware of the benefits of sustainability and space-efficiency.
Small Smyrna Office May Represent The Future
Posted by Sibet B Freides in Green, Real Estate Trends on September 23rd, 2010
A recent article on Builderonline.com talks about a small office building that was recently completed right here in Atlanta. The theme of the article is humbling as the completion of this 6,000 square foot space somehow represents Atlanta’s newest construction.
I understand the analogy here. Over the last decade Atlanta has seen the birth of an entire skyline. According to the article, in 1999 Atlanta completed construction of 11.2 million square feet in 258 buildings.
This 6,000 square foot office building is a definitive sign of our current construction industry. It is small, about half the size of a drugstore. While the size could be viewed as a representation of our struggling construction industry, some may view it as a precursor to the future. Smaller office spaces could easily be a trend of the future as massive building has gotten us where we are today. Also, this new office building is LEED certified.
So even though this article was meant to paint a picture of our struggling and halted industry and how much it has slowed, maybe this is a representation of what the future of office construction looks like. Maybe it will be smaller and I hope it will be LEED certified. Let’s try and take a positive note for the construction we do have.
Finding The Sweet Spot In The Luxury Market
Posted by Sibet B Freides in Green, Marketing, Real Estate Sales, Real Estate Trends on August 18th, 2010
Builders everywhere are trying to design new homes with the latest in sustainable technology while trying to maintain a high profit margin. There are several experts that see unstoppable reduction in profits for new homes. Most of them think that this is a change that builders need to start accepting for the future.
Builderonline.com has a great article featuring a builder, Bill Freeman. Freeman built a 3,000-square-foot house in Essex, Conn. with complete dedication to energy efficiency and savings. What he found out was that it’s difficult to build a large and luxurious home with a high HERS rating. He then called in a consultant who helped make a few minor tweaks to increase its rating. Tweaks along with his initial plans cost him more than usual, which will ultimately result in a lower profit margin.
The reality of the market is that striking a balance between profit and sustainability is a challenging task. In Freeman’s words, “A lot of builders don’t like hearing that, but it’s the reality now.” The challenge, especially in the luxury real estate market, is continuing to provide consumers with what they want while also obtaining high-energy efficiency scores and sustainability certifications.
All of this will certainly dictate how we market these types of homes. Just like new home designs, we must also strike a balance between luxury and sustainability in our messages. It is also important that sales agents are able to strike that balance when dealing with potential buyers.
As home building starts to pick up, everyone involved in the building and selling process needs to be on the same page when it comes to finding the sweet spot in the luxury market.
Are You Wasting Money On Your Developments?
Posted by Sibet B Freides in Green, Marketing, Real Estate Sales, Real Estate Trends on August 17th, 2010
Builderonline.com has a great article titled “50 Ways To Waste Your Money.” It’s on their website and in this month’s issue of builder magazine. If you haven’t read it yet, I suggest you do so here.
It’s a lengthy article but it’s worth a read in its entirety. I naturally enjoyed some of the more marketing and advertising focused tips. Here are a few of the ones that I really liked.
Don’t Train Your Salespeople To Explain The Value Of Energy Efficiency
I have talked about this before but when you build a sustainable home and obtain a certification for it, it might not matter if you don’t have the proper people selling it. How can an untrained sales person sell something they don’t know anything about? You better believe that buyers who are attracted to your product because of its Earthcraft certification are going to have some serious sustainability questions. Salespeople need to be able to talk the talk when it comes to selling sustainable homes.
Neglect Your Website
According to the article, a third of home buyers rely on the internet as their first step when searching for a new home and 94 percent of buyers use it as a tool to search refine their choices during the buying process. Knowing this, I am not sure why anyone would neglect their website to save money. A lot of developers also make the mistake of not updating their websites regularly. Webmasters may be expensive but I would avoid the temptation of cutting costs in this department.
View Technology As A Cure-All
A lot of us are excited about the advancements of the web and mobile devices. The article issues a sound warning to those who may be relying on technology to do old things more efficiently. Experts believe that these new technologies, especially mobile ones, should be used in new, effective ways to create sales and leads. If you rely on these new technologies to execute old strategies, we are selling ourselves short.
These of course, are just a few of the ones that I really like. There are 47 more that touch on building, marketing, consumer research, and design. It is a read that is well worth your time.
How Big Can A Certified Sustainable House Be?
Posted by Sibet B Freides in General, Green, Marketing on August 11th, 2010
It’s an interesting question and one that certainly needs to be answered. According to the U.S Green Building Council’s LEED program, a large house can indeed be certified. This doesn’t mean that it goes without penalty of course. Any home over 1,900 square feet applying for a LEED certification will lose points. Is that it?
It is a compelling argument right now. Boyce Thompson has a pretty interesting article about it over on Builderonline.com. He clearly thinks that larger homes shouldn’t be certified but he also respects the counter arguments.
I am having trouble understanding how a home with several unused rooms can be considered sustainable. Isn’t this the complete opposite? Should water saving toilets and fixtures really help a mansion qualify for a sustainable certification? It seems there are mixed opinions and as Thompson states in his article, “The many competing standards in the marketplace make comparisons very difficult.” Since there is no set standard in certification, who wins the final argument on what is sustainable and what isn’t?
This can be confusing for consumers and builders. Until there is a set standard in sustainable certification I think things will continue to be confusing.
Look Beyond Square Footage
Posted by Sibet B Freides in Green, Marketing, Real Estate Trends on August 6th, 2010
A reduction in square footage in new homes shouldn’t be viewed as a bad thing. In fact, consumers are actually looking for homes that are smaller, include sustainable features, and are high customizable.
This doesn’t mean that builder should down scale their current floorplans, add Energy Star appliances, and give buyers a choice of finishes. Creating a smaller yet attractive floorplan is somewhat of an art. Lucky for us there is an article on Builderonline.com that hits on a few strategies when it comes to successfully downsizing floorplans. It turns out that it involves more than just removing a bedroom or a closet.
According to the article, creating an attractive floorplan less than 2,000 square feet involves strategically placing windows and adding character wherever possible. Buyers are still looking for a nice space to call home and a reduction in size makes the need for character more important than ever. Ideas include varying the heights of ceilings in different rooms which adds depth to the home’s design; placing windows at the end of hallways and including natural light are key aspects in design.
We can’t forget about the importance of high-end and customizable features within the home. Just because buyers are looking for smaller floorplans doesn’t mean they are skimping on the overall living experience. A compromise in space will surely mean an expectancy of nicer fixtures and details. This is especially true with Generation Y buyers.
Smaller homes are definitely in demand, which will continue to grow. Be sure to strategically plan your new homes by looking beyond a reduction in space and focus on an increase in character and customizable options.
How The Recession Is Shaping The Future Of Real Estate
Posted by Sibet B Freides in Green, Real Estate Economics, Real Estate Trends on August 5th, 2010
Many experts believe that the developing demographic trends we are currently seeing will drastically affect the demand for future rental properties. After reading a report on James Chung’s webinar its is hard to argue otherwise.
In his presentation, Chung reviewed several factors that will directly shape the market. Included is the expansive growth of the US population. In Chung’s words, the positive growth of a fully industrialized country is very positive for the real estate market outlook. The point is that market demand and its marketing will completely rely on this growth. As preferences shift so does the market.
While it’s a challenging task, it is a positive one. According to Chung, the economic climate that the boomers and Gen-Y face will directly shape the majority of demand for tomorrow’s market. This makes complete sense when you consider the shear numbers of these two generations. . Whatever economic hardships these generations face now will determine what builders will be focusing on in the future.
According to Chung, the direction we are heading leads to an increased demand in rental property. Reduced incomes will cause this increased demand for rental property.
The change in consumer attitudes towards health change is driving more than just healthcare but also where people want to live. Consumers will want sustainable and healthy homes. We all understand that people want sustainable homes for energy savings but we also need to remember that they will want them for health reasons.
On a positive note, Chung assured participants of the webinar that the change in the market will be a positive one as long as developers recognize the changes and differences. In his words, “As bad as the recession was, it has corrected the market and has presented a window for reinvention.”
