Sustainable Construction and Development

[Mitch Mallett-Hiatt]

New to bigger pockets forums. I thought I would give it a try and see what discussion will arise from a topic that is not common to this forum.

As an Architectural Engineer that lives and breathes construction, I would like to see if investors know much about sustainability as a building practice. Being an individual surrounded by case studies of building science and the benefits of sustainable construction, I would build no other way. Common construction is highly influenced by marketing from companies that are also making a profit. Sustainable materials cost very little in comparison. That said, no one is advertising for straw bale insulation and similar basic building materials. It's almost dirt cheap with very little profit margins for the seller. I can only imagine that investors would love to know more about high quality, low cost construction materials and methods.

Anyways, my only objective for this post is to start a discussion and possibly share my knowledge with others.

[Mitch Mallett-Hiatt]

@Joe Splitrock an example of a new build that would be considered sustainable and energy efficient would be a post frame straw bale home. Seeing that you're from South Dakota I'm sure you're aware of the surplus of straw bales typically used for cattle feed. However that is simply one material that has many advantages over engineered materials such as common fiberglass batt insulation. Post frame construction is another building practice of using the same common material in a different construction method. Post frame, or balloon framing, is a simple framing method that was common until the introduction of stick framing and increase in labor unions. Benefits of post framing include but are not limited to: more efficient use of lumber, thicker wall cavities, large roof spans and quick to dry-in. Alternative engineered materials that are competitively priced with typical 2x4 stud walls framed 16" o.c. would be Structural Insulated Panels (SIPs). Even though I cannot say they are sustainable, they are at least efficient, simple to construct, and quick to dry in. Another alternative for new construction homes would simply be the "advanced framing method". The "advanced framing method" is simply building a home out of 2x6 exterior studs spaced 24" o.c.. Nothing changes as it's still allowed by code. Most framers build at 16" o.c. just because that's what they've always done and no one has asked them to do differently.

I understand that the common understanding of sustainable construction is that it's more expensive. From my perspective, this is mostly due to the commercial application of the term. Of course a higher efficiency condensing unit will cost more because it required more research and development and better manufacturing. 

I guess the better question is how often do developers have an interest in building with natural materials? There are some market incentives for multifamily developers to get LEED or Energy Star certification to be able to demand higher rents from tenants. Are developers and investors simply looking at the ROI, cashflow, equity, and with little regard for the construction? Even from the perspective of appraisal value and equity. Sustainable homes consistently hold their value far better than homes of equal initial cost.