Resilient buildings can save lives, heartaches, and time and effort spent on recovery from damages. Can resilient/sustainable buildings also save money?
A sustainable building has an economic aspect to it: buildings are long-term, capital-intensive investments designed to perform for decades into the future. Buildings that do not perform well under current and future climate events will have a negative economic impact on occupants, investors, and even the community and local government.
The good news: resilience is largely quantifiable, achievable, and demonstrates a positive return on investment (ROI).
In this blog post, we provide information on the financial feasibility of a resilient, sustainable home:
Costs Of Building Resilience and Green
Question: Can we afford to make our house more resilient/sustainable?
Answer: Can we afford not to?
For example, the average cost of damage after a heavy storm, powerful winds, or hail is roughly $5,500 thousand dollars, but that number fluctuates greatly depending on the magnitude of damage (and the source of information you research). As extreme events continue to become the norm, expect those numbers to go up substantially. Another example of average costs to recover from water damage is estimated here, by square feet.
One way to hedge against that cost is buying insurance, but that may be a subpar solution. Because insurance companies are at the forefront in realizing the growth in extreme events, they either massively raise premiums or completely drop coverage in some risk-prone areas. In the sad event you do experience damage from a climate hazard, getting the insurance money is not always easy and you are still left with the task of restoring your home.
Nevertheless, if you are lucky and manage to cover yourself with insurance, you will pay only the deductible. In our blog post on climate insurance, we share the cost and feasibility of different types of insurance for varying types of risks. The premiums of all types can often be lowered by adding resilient/sustainable features to your home.
Looking at either new construction or retrofitting, adding sustainable features (both green and resilient) may require a higher upfront cost, but the financial (and mental) savings come later, in many cases yielding a positive, better return on investment (ROI).
First, let’s look at several cost examples of resilient features:
ROI
The extra costs of these features tell half the story. As with any investment, one must look at the ROI. When we invest in our home, and specifically in resilient features that make it more sustainable, we should look at the operational savings, opportunity costs and other, non-financial goals we want to meet.
Opportunity Costs
As mentioned, not only the return on investment should be considered, but also the opportunity cost. When you need to make the decision of adding a new feature to your home, making a purchase, choosing a material or service, it is tempting to go with the cheapest option, and sometimes it is the only option that your budget permits.
The problem is that the cheapest option will probably not last as long as you need it to, and you will be forced to choose again, and repay. Choosing resilience in building design will make your decision last longer, therefore making it more affordable. Think buying sidings that last 30 years vs replacing every 7 years.
Save on Resilience
Luckily, some organizations try to make it easier for us financially.
Here are some examples of ways to reduce the cost of resilience in buildings:
Final Thoughts
As we often reiterate in our blog posts, a sustainable home is a resilient one. Today there is enough research to refute the belief that resilience means more expensive and proves that it can actually mean more affordable and that resilience building development doesn't have to more expensive.
Still, since building resilience may lead to building beyond code, we can expect more upfront costs, but we must keep in mind that there are financial and non-financial returns that come later. In addition, we should and can find ways to reduce upfront and ongoing costs through either funding or discounts/rebates offered by different organizations.
And last, as we pointed out early on in this post, with the acceleration of extreme weather events (both in magnitude and frequency), we must learn how to manage climate risks and opportunities, and build resilience into our homes and communities.
KEEP COOL. BUILD RESILIENCE. EAMPACT.
References
Climate Resilient Boulder
2022-04-28Sacramento Confronts Flood and Drought Risks
2021-09-07Collective Positive Impact
2021-09-28What is Climate Adaptation
2021-09-12How does the environment impact our homes
2021-09-12Branch Out
2021-09-14What is True Sustainability
2021-09-15Community Resilience
2021-09-12eampact blogs, articles, service and product references are not intended for design, planning, purchasing and construction of homes. eampact is not an architect, engineer, contractor or product manufacturer, and does not practice or provide products, design or construction services. eampact blogs, articles, services and product references are for informational purposes only and are not intended for design, planning, purchasing and construction of homes, nor are they a substitute for consulting with professionals / professional advice.
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