Print This Article			Print All Articles			Email the Editor

Successful Business Strategy Starts With Green Home Building

Addressing NAHB’s National Green Building Conference in Austin earlier this month, Hoyt said that his company’s focus on “Building a Better World” has turned McStain into a premium brand. His homes sell for an initial premium of 10%-15% and they resell for an average of 4%-11% more than homes of comparable age and size in the same market, he said, based on research by the Genesis Group and the University of Colorado.

In addition to building “visionary communities” that are in “a sustainable partnership with the natural environment,” McStain’s success can be attributed to principles that should be the focus of every home builder’s business. Those include treating employees, clients, associates and the broader community with respect and integrity; delivering neighborhoods on time and on budget; and pursuing operational excellence through strong leadership and planning, crystal clear communication, teamwork, adaptability and more.

More than two-thirds of consumers said that if they are getting bad service, they will walk out of a store even if they have found exactly what they have been looking for, according to results of a Genesis survey of home buyers cited by Hoyt.

Hoyt recommended the Denison Culture Model for builders who are seeking to optimize business returns by concentrating on their corporate mission and operational performance.

Hoyt advised companies who want to be identified as green builders in their marketplace to position themselves somewhere in between Wal-Mart’s lowest prices in town and the vocal advocacy of Greenpeace.

“We have gained market share by taking the high ground and not playing the price game, and by pushing what we’re about,” said Hoyt. His company’s sales surged 57% in 2001-2002, far ahead of the competition, he said, and even in the tough housing market that prevailed in the Denver area in 2002-2003, McStain managed to eke out a 1% increase in sales, compared to a 13% decline among the city’s top 10 builders and a 6% drop overall.

There are many options that builders can pursue in their efforts to become green, and Hoyt advised starting out with incremental changes.

Discovery House

“You don’t have to do it all,” he said. For example, in its Discovery House, a research house McStain has been building to demonstrate the effectiveness of new design, technology and products, “we tried to control all of the glues in the house,” he said. “There are about 50 and most are pretty nasty, but it wasn’t possible, so we went to paint and carpet.”

“Learn how to talk to your partners,” Hoyt added. “Installers and contractors need to understand what we’re trying to do.”

Hoyt also said that green home builders have lessons to learn from commercial construction, which uses better engineering, building systems and quality control.

From the Discovery House, which is being developed with Building Science Corporation, a consortium member of the Department of Energy’s Building America Program, Hoyt said his company hopes to “learn what works and what doesn’t, and it is a good way for us not to get in trouble,” an especially timely concern considering today’s major liability and insurance issues in the industry.

When materials are “a little too leading edge, then you have to do your own due diligence on it,” he said, “and make sure they work.”

The Discovery House will be sold after it is completed, but testing rights will be maintained for two years. The research it is demonstrating includes:

• The house is exploring the use of livable outside spaces, including a screened porch facing north that can be used for sleeping and shaded seating in the afternoon, a shaded porch on the south and an outdoor kitchen.
• Site orientation, architecture, design and landscaping have been oriented to minimize the need for mechanical heating and cooling and artificial lighting in the daytime. The south side of the house, for example, has been oriented within 20 degrees of due south in order to maximize direct solar heat gain during the winter months when the sun is lower on the horizon. In the summer, overhangs or retractable awnings shade south-facing windows and porch doors. Exterior operable ventilating shutters have been added to the windows on the west elevations.
• Strategies have been developed to keep rainwater away from the foundation wall perimeter, to drain groundwater with sub-grade perimeter footing drains before it gets to the foundation wall and to eliminate the potential for moisture to accumulate and damage concrete slabs.
• A well-sealed and airtight exterior wall and properly installed insulation will contribute to making the house at least 50% more efficient than a typical house. The construction of the roof and exterior wall assemblies will provide for a continuous drainage plane in order to deflect water and prevent moisture penetration. A CompleteHeat® system from Lennox Industries will provide both the space heating and hot water from a single unit, which is supplemented by a three-panel solar domestic water heater on the south-facing roof.
• Ceiling fans throughout the house and two whole house fans with insulating covers will minimize the need for central air conditioning, which accounts for about one-sixth of the electricity generated in the U.S.
• The home is built to meet the American Lung Association's Health House guidelines for healthier indoor air. Rigorous standards have been set for whole house ventilation and removal of indoor pollutants, reduced use of carpet, a central vacuum system and lower-VOC (volatile organic compounds) in paints, finishes and furnishings.
• Responsible use of wood includes the use of structurally engineered lumber from faster growing plantation trees, the use of wheatboard shelving made from agricultural byproducts and the use of advanced framing techniques to reduce the amount of frame lumber in the house. It is estimated that an acre of forest — up to 44 trees — goes into the 12,500 board feet going into an average 2,000-square-foot home.
• The home’s landscaping plan includes soil analysis to determine the nutrient content of the soil and the needed soil amendment levels, a drip irrigation system, an alternative drought-tolerant turf and a WeatherTRAK ET Home Controller, which can capture locally broadcasted weather data to adjust the irrigation system flow times to match actual water needs of plants.

Hoyt was named the Green Advocate of the Year in this year’s National Green Building Awards.

'Green Building Guidelines' Available Through BuilderBooks.com

"Green Building Guidelines," available through BuilderBooks.com, is the Sustainable Buildings Industry Council's second generation of sustainable residential design guidelines created in cooperation with NAHB. Written in plain language with complimentary illustrations, case studies and check lists, the guidelines is a valuable resource for builders and even buyers interested in producing or purchasing energy- and resource-efficient homes. Each chapter reviews specific design strategies as well as offering construction and marketing tips, checklists and references to many additional resources. To view or purchase this publication, click here, or call 800-223-2665 to order.

go to top