Environmentally friendly home builders say they are finding success in today’s market.
Using technology, the industry’s best practices, and designs that are inherently more eco-friendly have helped, according to the industry leaders who spoke to The Mortgage Note.
ICON is a company that has made headlines in recent years for its use of technology.
Bungane Mehlomakulu, director of building science and building performance at ICON in Texas, said they are leveraging their 3D printed wall system to achieve exceptional environmental performance.
Mehlomakulu said the printed wall system delivers superior thermal resistance (R-23 equivalent) and airtightness compared to conventional construction, creating a fundamental platform for energy efficiency that exceeds code requirements across their projects.
ICON’s 100-home community in partnership with Lennar at Wolf Ranch in Georgetown, TX, is the world’s largest community of 3D-printed homes. The project was just completed, and 75% of the homes had already been sold as of Mid-March, according to CNBC.
The development integrates renewable energy with high-performance construction. Each home features a solar energy system sized to provide approximately 80% of the estimated electrical demand.
“This integration of efficient building enclosure and renewable energy has resulted in remarkably low Home Energy Rating System (HERS) scores in the single digits — a significant achievement considering the average 2023 new home scores around 57 according to the Residential Energy Services Network (RESNET), and typical existing homes score above 100,” said Mehlomakulu.
ICON is underway on eight single-family residential homes in the Wimberley Springs community, 40 miles south of Austin. The homes feature designs from ICON’s digital architecture catalog and range from four to five bedrooms and 2,900 to 4,100 square feet.
The Wimberley Springs development incorporates the Department of Energy’s EnergyStar certification standards, combining the inherent benefits of ICON’s wall system with strategic design elements like solar orientation, roof overhangs for passive shading, and high-efficiency air conditioning systems.
ICON’s development in the Mueller community in Austin demonstrates a broader approach to sustainability through Austin Energy’s Green Building program, which predates and parallels LEED certification. These homes are designed to achieve a minimum three-star rating by addressing site design, material selection, water efficiency, and energy performance as an integrated sustainability strategy.
The Wimberley Springs and Mueller developments utilize CarbonX, ICON’s low-carbon printable material.
“A life cycle assessment conducted by the MIT Concrete Sustainability Hub determined that homes built with this system have a lower overall carbon footprint compared to conventional wood-framed construction over a 75-year period — challenging the conventional wisdom that concrete-based construction necessarily carries a higher environmental impact than wood construction,” said Mehlomakulu.
Environmentally friendly home building is gaining traction in many parts of the country.
Stone Martin Builders, an ENERGY STAR home builder, has developments in 39 communities in Alabama and Georgia.
These ENERGY STAR-certified homes, designed to be at least 10% more energy efficient than standard new homes, offer buyers lower utility bills and reduced environmental impact.
“This gives our homeowners confidence that they’re investing in a home built to last, with reduced environmental impact and long-term cost savings,” said John Manasco, chief operating officer at Stone Martin Builders, in a statement.
ENERGY STAR homes follow strict standards set by the U.S. Environmental Protection Agency and feature high-performance windows, quality insulation, and energy-efficient heating and cooling systems.
Each ENERGY STAR-certified home undergoes rigorous third-party testing and verification to ensure it meets ENERGY STAR standards. Homes are inspected and tested multiple times throughout the building process.
Stone Martin Builders plans to construct more than 800 homes in Alabama this year.
What else works? Smaller homes are more eco-friendly.
Jonathan Palley, CEO of Clever Tiny Homes in California, specializes in building and shipping tiny homes. Sustainability is one of their core goals as a company.
“Our homes are energy efficient, require far less material input than traditional homes, and because they’re built in a factory rather than on-site, we do much less damage to the local water table than traditional construction methods,” said Palley.
Bar Zakheim, CEO of Better Place Design & Build in California, said his firm specializes in building accessory dwelling units, or ADUs.
“These homes are small, efficient, and add much more living space to existing neighborhoods without causing more suburban sprawl,” said Zakheim.
That doesn’t mean it is easy to get permission for tiny homes or ADUs in every municipality.
“The biggest challenge with our homes is helping customers find places to put them. Many zoning laws will classify them as mobile homes and forbid them in residential areas,” said Palley.
Zakheim said ADUs also face local opposition.
“Many neighbors don’t like them, and some cities are zoned to exclude them,” said Zakheim.
Sustainable rehabs are another way to increase environmentally friendly housing.
Andy Saintilus, founder of We Buy Doors in Florida, said in his Miami-based projects, he focuses on energy-efficient rehabs by integrating sustainable materials and smart home technology.
Some of the key features he includes are:
- Energy-efficient windows and insulation to reduce cooling costs by up to 30% in Florida’s hot climate.
- Solar panel integration, which, on average, reduces electricity bills by 50-75% for homeowners.
- Water-saving fixtures, such as low-flow toilets and showerheads which can save a household up to 13,000 gallons of water per year.
- Smart thermostats and LED lighting, which improve energy efficiency without requiring a major investment.
These types of upgrades make homes more sustainable and also increase resale value. In Miami, Saintilus has seen properties with energy-efficient features sell for 3-5% more than similar homes without them.
“Homebuyers and renters are looking for ways to reduce their carbon footprint, lower utility costs, and live in healthier, more energy-efficient homes,” said Saintilus.
One of the biggest challenges is cost.
“While green materials and energy-efficient upgrades save money in the long run, the initial investment can be 10-20% higher than traditional construction,” said Saintilus. “This can make budgeting tricky, especially in markets where affordability is already a concern.”
Another challenge is local building codes and regulations.
“Some cities, like Miami, encourage eco-friendly building, while others have restrictions that make solar panel installations or rainwater collection systems more complicated,” said Saintilus. “In some areas, financing for sustainable upgrades can also be limited, making it harder for investors and builders to scale these projects.”
Saintilus said that while challenges exist, the long-term benefits — lower energy costs, higher property values, and a reduced environmental impact — make green housing a smart investment for both builders and buyers.
Keeping up with green building trends will ensure builders and remodelers can compete.
That’s according to the National Association of Home Builders in Washington, DC.
In February 2024, NAHB and Dodge Data & Analytics released a SmartMarket Brief that revealed a majority of builders are involved with green building. The brief, Building Sustainably: Green & Resilient Single-Family Homes 2024, is compiled from a survey of 250 home builders and remodelers.
Energy efficiency, materials and resources conservation, and water conservation all increased since 2019, the last time the survey was done.
