Q: These green affordable ideas sound great. What can one expect to pay for say a 3bed 2bath 2000 square foot abode?
Adam W.

A: Adam, studies have shown that the cost of green homes is around 3-5% more than homes that are not green, which is pretty negligible. The cost of building varies from location to location and the type of construction and some other factors play a huge role in how much the end product will cost.  The factors that affect home cost include the price of your materials, appliances, finishes, fixtures, lighting, hardware, etc. Bathrooms, kitchens, and other rooms that require fixtures and appliances use a large portion of the budget. Therefore, adding additional rooms of this type will drive up your cost. For instance, the more bathrooms you want, the more your home will cost.

If you can find good deals on these products/materials then you can greatly decrease the final price tag of a green home. This is very possible but takes a lot of time for research. If you or someone in your family can do most of the research, then you don’t have to pay your designer to do it for you, cutting the design fee and keeping your money in your own wallet. Other aspects of home design that have a significant impact on the cost of the project are the structure of your home and the level of difficulty for constructing it. If your home has a very elaborate structure then it will undoubtedly take longer to build and be very frustrating for the builder. I can assure you that they will make you pay for their time and frustration. If you work with your builder through the design process, then you can use his excellent knowledge for structural ideas that will help you best reach your project goals and tailor the design to match his skill set. This will help make sure that the construction goes smoothly, takes less time (so labor cost are less) and also heighten the quality of the craftsmanship because your builder gets to build in a way he is most comfortable. He will also appreciate your ability to hear his opinions as well as your acknowledgment of his expertise. All too many construction projects end up in arguments between the designer/builder/owner because there is a lack of respect for what the construction crew does: they deserve respect and should have good communication with everyone on the project team.

Some modern affordable homes are being built with very little addition of traditional home features on both the interior and exterior, like molding around doors/windows and roof/eave decoration. These details cost money, and by omitting them, you can leave more room in your budget for things you would like to upgrade. This may be a deluxe stove/range because you love cooking, better quality lighting that uses less energy, or solar panels to heat water or generate electricity. In general, building green adds an average of 3-5% to your overall costs, but like I said, if you  are careful to avoid excess space and details that you do not need, you can reach your goals effectively well within your budget.

Your designer can help minimize budget waste on the most costly part of home building : doors and windows. It is important when designing for a strict budget that windows are placed in the most strategic places to get the best quality daylight in your home and to maximize the effect you want, such as framing a special view or to allow plenty of fresh air in living spaces.

Your best bet for finding out exactly what your home will cost is to get in touch with a designer and discuss your goals and expectations of your home project. That way, they can help you determine which parts will be the most costly or best deal and prioritize (cut out what you don’t need/add more of what you do need) until a solution can be reached within your budget.

The average cost for US home construction is $100-200 per square foot. The more expensive options you choose (cherry cabinets, marble floors…) the higher the cost per square foot of your green home. Material costs differ from place to place. A little piece of information to get you thinking about how location affects construction price: in Panama, the cost per square foot to build a home is around $40-50 dollars.

US 2000 sq ft home: $200,000 - $400,000
Panama 2000 sq ft home: $80,000 - $100,000

In general, this is due to wages in Panama being a LOT less than what we take to the bank. I don’t want to give the impression that they are getting more for less. It all evens out- unless you work here and build in Panama!

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