While the real estate market may be on the slow road to recovery, the demand for affordable housing and green living is on the fast track.
Gone are the days of more-is-more McMansions. The new generation of homeowners is looking for efficiency, quality and design above sprawling square footage.
Growing interest in sustainability has home buyers seeking out smaller, green housing to safeguard against increasing energy prices, diminish their carbon footprint, and maximize their home’s resale value.
The residential real estate market for middle class income earners in Pensacola is growing as well. Housing priced between $135k and $200k accounted for one third (33.4%) of all sales closed between April 2008 and April 2009.
Home designers and developers are building on these trends, creating a place for new home construction that meets the growing demands of today’s savvy, forward-thinking home buyers.
“Building green from ground up is the new construction way to energy saving and waste management in affordable homes,” said Pensacola home designer Jim Bozeman, president of Today’s Homes of Northwest Florida. “You have a team working together from beginning to end. Why work for the house when you can let the house work for you and save the environment?”
Bozeman is one of the designers working on Lakewood Cottages, a new Pensacola subdivision focused on offering the highest levels of efficiency at affordable prices. Just minutes from downtown Pensacola and Pensacola NAS at the Bayou Chico Bridge, Lakewood Cottages includes 92 single-family lots priced from $18,000, with new homes beginning at $120,000. The homes range from 1,200 to 1,600 square feet.
The neighborhood includes upscale features such as underground utilities, subdivision covenants and restrictions, architectural standards and curb and gutter streets.
“The subdivision is in the Barrancas Redevelopment Area and an Escambia County Enterprise Zone,” said Ken Ellzey, a developer and consultant on the project. “Each of these zones - and in this case the zones are overlapping - offers unique opportunities for development and cost benefits for home buyers.”
Ellzey, Doug Halford and Ray Russenberger founded Lakewood Investment Partners, LLC, a residential real estate development company, to assist the community with adequate, sustainable redevelopment initiatives.
Green from the ground up
The green construction Lakewood Cottages homes are built for efficiency “from the foundation to the roof,” said Bozeman. Energy efficiency measures include insulation, caulking, weather- membranes, exterior siding, energy efficient doors & windows, mechanical HVAC system, water efficiency elements and more. “It is a complete building envelope.”
One of first homes sold in the subdivision on Seamarge Lane, designed by Bozeman and constructed by builder Tomas Ondra, just received the Energy Star for Homes Certification. The home was designed using Florida Green Building Coalition elements and the Gulf Power Earth Cents Home Program. The Energy Star Certification qualifies the home for an Energy Efficient Mortgage (EEM).
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Going green, saving green
It wasn’t that long ago that going green meant a lot of added expense for specialty, hard-to-find items and their installation. But as the demand grows for green products and materials, the cost is mitigated. Many manufacturers now produce green building materials, which leads to more competition, better pricing and more accessible distribution outlets.
“One of the common misconceptions is that people think green construction is expensive, or not affordable,”
Not only has the initial cost of green building come down to levels comparable with conventional construction – averaging just 2.4 percent additional cost - but the long-term financial advantages more than make up for any difference in cost.
“For example, an EPA Energy Star rated project will save 30 percent on average for utilities,” Coleman said. “If the average household spends $1900 on utilities every year, it adds up to a savings of $600 a year.”
And while green construction may be on the edge of mainstream now, in five years it will be the baseline expectation for people who are shopping for homes.
“According to a recent study from Mcgraw-Hill, green homes have higher resale value and are on the market for less time than comparable conventional homes,” Coleman said. “Especially when you look at how tumultuous the housing market has been, once the economy starts to turn around, buyers are going to find their way to green homes.”
Financing the Green Dream
While green is an investment, homeowners don’t have to wait for the first power bill to enjoy the financial returns of green building. Those in the market for moderately-priced housing have many options that make buying a green home even more affordable.
First time home buyers are also eligible for a $8,000 tax rebate from the Federal Government.
The tax credit, which is available to those who close on their homes by Nov. 30, has created an enormous rush of fist time home buyers, said Dee Dee Rhodes, senior vice president and residential lending manager at Gulf Coast Community Bank.
“That is almost everything I’m doing right now,” she said. “There are a lot of first time homebuyers out there looking, and a lot to choose from.
One thing those who are looking for a new home should know, she said, is that a first time homebuyer doesn’t mean you have never owned a home before.
“A first time homebuyer is someone who hasn’t owned a home in the last three years,” she said. People in Pensacola who sold homes or moved into rentals soon after Hurricane Ivan in 2004, for example, might be eligible for a variety of first time homebuyer benefits.
“There is down payment assistance available through the SHIP office in the city of Pensacola for people who make less than 80 percent of the median income,” Rhodes said. “Also, in the state of Florida, there is money available through the state housing office for people whose income makes them eligible.”
Nine lots in Lakewood Cottages are reserved for first-time home buyers in a specific income bracket meeting a composite affordability definition and subsidized by Escambia County, and down-payment assistance is provided for a limited number of lots.
The energy efficiency available in the subdivision also means home buyers may qualify for a “green mortgage.” One example, the Energy Efficient Mortgage (EEM), credits a home’s energy efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing borrowers to qualify for a larger loan amount and a better, more energy-efficient home.
Tips for buying a green home
• Ask for help – Builders and real estate agents should be able to help you find your green dream home. Ask them what they know.
• Stay close to home – Location is about more than convenience, it’s about the impact everyday travel has on the environment.
• Buy less, live more – A well-planned, moderately-sized home is going to offer more comfort and a greener life. Consider how much space you need before simply buying as much as you can afford.
• Conduct an energy audit – Some elements you can see for yourself, but the best audit is a professional audit, which can also recommend energy upgrades.
• Get shady –While Floridians have special concerns when it comes to trees and hurricanes, the shade of a few well-placed and well-maintained trees can take a big bite out of your monthly energy costs.
