REALTORS® on Building Green: Niche Market or Wave of the Future?

WASHINGTON, May 13, 2008

Home buyers and commercial investors alike are increasingly demanding green building practices, and many experts agree the environmentally friendly building approach is here to stay.

That’s what speakers at today’s Land Use, Property Rights and Environment Forum told REALTORS® attending the National Association of REALTORS® Midyear Legislative Meetings & Trade Expo, here through Saturday.

“REALTORS® build communities, and they can play a significant role in making sure those communities incorporate environmentally friendly building practices,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif.

Homes and buildings have a major impact on the environment. According to the U.S. Environmental Protection Agency, residential and commercial buildings account for more than one-third of the nation’s total energy use, 12 percent of water use, 68 percent of electricity consumption and 38 percent of carbon dioxide emissions.

At the forum, David Rodgers, deputy assistant secretary of the U.S. Department of Energy, announced a joint partnership with NAR to produce educational materials to educate REALTORS® about energy efficiency in existing homes and for REALTORS® to use in educating their clients about improving their home’s energy use.

“REALTORS® have access to millions of home buyers and sellers each year and are in an excellent position to help raise awareness of the benefits of energy efficiency. This initiative will help REALTORS® become better prepared for consumer demand.” said Rodgers.

A recent NAR survey of REALTORS® who practice residential real estate showed there is high demand among potential home buyers for green features. Nearly nine out of 10 REALTORS® said their clients are most interested in the energy efficient features of green homes and their potential cost savings. Nearly half of those surveyed said they frequently discuss green building practices with their clients and nearly 90 percent agreed there will be even more interest in green building a year from now.

An informal survey of REALTORS® who practice commercial real estate showed similar findings. One-third of those surveyed said green building is important to their clients and more than half frequently discuss green building practices with their clients. Nine out of 10 agreed that a year from now there will be even more interest in environmentally friendly building.

“Increasing energy efficiency through green building is the cheapest, quickest and cleanest way to extend natural energy supplies, tackle climate change and enhance energy security,” said Kateri Callahan, president of the Alliance to Save Energy. Callahan believes that in the future, consumers will demand greener building practices that will be driven by policy mandates at all levels of government.

Doug Gatlin of the U.S. Green Building Council, which developed the LEED building rating system for certifying green buildings across the globe, agreed. “Green building is an industry trend, not a fad. There is a market shift toward green buildings; they are more attractive to commercial tenants because these spaces are more efficient and operate for less, and they are better for occupants’ health and increase their productivity.”

The National Association of REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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