Are sustainable homes worth the investment?
The short answer is, yes. But, like most things, getting to that answer is more complicated. Whether it’s achievable, realistic, or the right choice will depend on your unique circumstances. Throughout this blog we will cover some of the reasons why we have always believed it’s worth investing in building a sustainable home. We will also provide some alternative options if this is not achievable for you.
Why sustainable homes are worth the investment, even in the current housing market
The average cost of homes in Australia has reached an all-time high. With these rising prices, homeownership for the average Australian has become increasingly challenging. If you’re in a position to build a new home we think it is crucial now, more than ever, to invest wisely.
There are three important aspects to consider when deciding if it is worthwhile investing in building a sustainable home: the initial cost, ongoing savings, and environmental impact.
Building a new sustainable home costs more up-front
There’s no getting around it. It can definitely cost you more up-front to build a sustainable home compared to building a home without sustainability in mind. Whilst you can spend a lot of money and build an expensive home that is not sustainable, most of the time, if you’re comparing a similar size and finish of a sustainable vs not-sustainable home, the sustainable one is going to cost more up-front.
This higher price tag can be because the cost of a sustainable product is more. Or it can be because you are paying for something you otherwise wouldn’t need for a home that is not sustainable.
Higher Cost
Sustainable homes often require materials and design elements that are more expensive upfront. These elements are typically required in a traditional build. However, they cost more in a sustainable home, due to alternative methods/materials.
Custom and Solar Passive Design
While not all sustainable homes are custom-designed, if you choose a custom-design to tailor the home to your needs it will cost more than purchasing something off-plan. Additionally, while designing a new home with solar passive design principles doesn’t necessarily cost more (in design fees), similarly to custom-design, it will cost more than purchasing an off-plan or pre-designed project home that does not incur additional design fees.
High-Thermal Mass Materials
One of the big contributors to the higher initial cost of our sustainable homes is the inclusion of rammed earth. High thermal mass materials like rammed earth help regulate indoor temperatures, requiring special production processes (with materials, specialised equipment and skilled labour) that make them more costly than conventional wall materials like plaster with brick or corrugated cladding.
High-Quality Materials/Finish
High-quality materials and finish are not exclusive to sustainable homes. However, to minimise future costs in maintenance and replacement; there does need to be a higher up-front cost for good quality materials and trades.
Windows
Double-glazed windows come with a higher price tag due to the additional materials and more complex manufacturing processes involved. Many project builders and traditional homes utilise awning windows as they are cheaper. However, to maximise cross flow ventilation and capture breezes, sustainable homes utilise casement or sliding windows, which cost more. Additionally, in solar passive designs, there can be more windows or larger windows to increase the cross-flow ventilation, which can add to the initial cost of your home.
Eave Overhang
Purposefully designing homes with correct eave overhang helps reduce heat gain through windows during the summer, while also allowing the sun to naturally warm the home during the winter. However, this requires additional costs in materials including trusses, eave sheeting, and roofing materials (to name a few) and the additional labour required for installation. This will increase the initial investment. All of this contributes to a higher up-front cost than a traditional build with limited or no eave overhang.
Additional Cost
In addition to higher-costs, certain sustainable features are added expenses not typically needed in traditional homes. Some of these additional sustainable features include rainwater tanks, solar systems and ceiling fans (to name just a few).
Rainwater Storage Tanks
Rainwater tanks enable water collection and require both the tank itself, any tank base and initial water supply, and added plumbing infrastructure and pressure pumps. This makes them an additional upfront expense.
Solar Systems
Solar PV systems require a significant initial outlay, encompassing the cost of panels, the inverter, any battery storage and the installation. While solar systems are a significant investment that sustainable homes require.
Ceiling Fans
Strategically placed ceiling fans offer sustainable occupant cooling but represent another added cost that a traditional project home would not necessarily include.
These higher and additional costs contribute to the larger initial investment in a sustainable home. However, elements like these are essential for creating a home that prioritises lowering environmental impact and energy efficiency from the start. These features are what contributes to the long-term savings of a sustainable home.
Ongoing cost-savings
Sustainable homes deliver long-term financial benefits. Customised and solar passive design, along with high-quality, low-maintenance and sustainable materials function to reduce ongoing expenses.
Custom Design
A custom-designed sustainable home maximises space and efficiency. Customising the layout to suit your specific needs avoids wasted space, ensuring that every dollar is spent on what matters for your home. Designing a home that does not include wasted space will also reduce your heating and cooling costs, as you will not be paying to regulate temperature in unused spaces. By considering your needs now and in the future when building, not only does this make your home really work for you, it minimises the need for future renovations.
Solar Passive Design
Solar passive design is a fantastic way to achieve long-term cost savings by designing a home that works in harmony with the local climate. Good solar passive design maintains a comfortable indoor temperature year-round with minimal reliance on artificial heating and cooling systems. This is achieved by carefully considering factors like north orientation (in the Southern Hemisphere) and using high thermal mass materials, such as rammed earth. Window placement for cross-flow ventilation and correct eave overhangs also play a key role, reducing summer sun ingress and maximising winter sunlight. Quality insulation further supports this energy-efficient approach. This translates directly into significant ongoing energy savings in the daily operation of your home.
Rammed Earth
Materials like rammed earth, are built to last and require minimal upkeep. Because of the excellent thermal properties of rammed earth that naturally balance temperatures, the walls function to significantly reduce the use of artificial heating/cooling systems. Additionally, rammed earth is incredibly low-maintenance, with far less upkeep required than materials like timber. These properties mean that rammed earth delivers ongoing cost-savings throughout the long lifespan of your new home.
High-Quality Materials and Finish
High-quality products can also reduce the need for replacements and maintenance. Investing in good quality materials, joinery, hinges, tapware, paint etc. will all increase the longevity of your home. Additionally, working with good trades to create a high-quality finish for your home can reduce maintenance requirements. It’s worth noting that just because something costs more, doesn’t mean it is higher quality. Doing your research on the brands, suppliers, builders, and trades you’re purchasing from or working with is key to ensuring you are making a good investment.
Windows
High-quality windows with double-glazing contribute to energy savings by reducing heat loss in winter and blocking excess heat in summer. Low-E Argon Gas double-glazing functions to regulate indoor temperatures by reducing heat loss in winter and heat gain in summer. High-quality double-glazed windows contribute significantly to energy efficiency, lowering utility costs and minimising the home’s environmental impact.
Solar PV Systems
While it may seem like a significant expense, most Australians find that solar panels pay for themselves in just 2 to 5 years by greatly reducing or even eliminating electricity bills. As energy prices continue to rise, solar panel owners save money and protect their energy supply, achieving greater energy independence. They require minimal maintenance, often lasting 20–25 years with simple upkeep, and many governments offer incentives, rebates, and tax credits to offset installation costs. Modern technology also ensures high efficiency, even in low-light conditions, while battery storage allows for the use of your excess energy during cloudy days or at night.
Rainwater Storage
Water tanks might cost more at the start, however they lead to significant savings. Rainwater tanks reduce reliance on municipal water and lower household water bills. Rainwater storage becomes especially valuable in areas with water restrictions or rising water costs, giving homeowners more control over their water supply. By lessening dependence on external water sources, a rainwater tank can provide cost savings over time.
A Valuable Asset
Another advantage of building a sustainable home is its long-term value as an asset. Eco-friendly homes are increasingly in demand. According to Domain’s 2024 Sustainability Property Report, energy-efficient homes are significantly higher in value compared to traditional homes. Additionally, while sustainable homes are still less common, they are highly sought-after. Buyers are happier to pay more, as they know the benefits of a sustainable home and there are fewer available for purchase. So, while you’re making a positive impact on the environment, you’re also securing a valuable financial investment for the future.
Speaking of environmental impact
Building sustainably has a profound positive impact on the environment by reducing waste, conserving resources, and lowering carbon emissions.
Reduced Carbon Footprint
Sustainable materials like rammed earth, with its low embodied energy and recyclable properties, significantly cut the carbon footprint of a home. Locally sourced materials further minimise emissions related to transport. Additionally, by building a custom home tailored to your current and future needs, you will not be building more home than you require.
Resource Conservation
Installing features like rainwater storage tanks reduces reliance on municipal water systems, conserving resources. Solar panels also decrease reliance on non-renewable energy sources, contributing to a more sustainable energy landscape.
Lower Waste Production
Sustainable homes are designed for longevity and minimal renovations, which helps reduce construction waste over the home’s lifespan. By investing in materials and designs that last, the overall embodied energy of the home will be reduced.
Positive Ecological Impact
Solar passive design principles that harness natural light, airflow, and insulation help decrease energy consumption and reduce greenhouse gas emissions. This design approach creates a comfortable and energy-efficient living environment that respects and works with local climates.
Not a reality for everyone
We recognise that building a new sustainable home isn’t feasible for everyone, especially with the higher upfront costs involved. However, there are alternative options that can still contribute to sustainable living, whether you’re building on a budget, renovating, or renting.
Consider a Smaller Home
A smaller home requires fewer materials, less energy to maintain, and a smaller environmental footprint. With careful planning, even a compact space can feel open and functional, providing a comfortable, sustainable living environment.
Build in Stages
If you have the flexibility to build over time, consider constructing your home in stages. For example, considering your future needs and designing the whole home, you can then build in stages. Starting with the basics, you can build additions as your needs change. If you have a young family you may be able to build less bedrooms and then add more later. This will support you to build sustainably within your means. Starting with the essentials and gradually adding sustainable features can help spread the costs. This allows you to incorporate eco-friendly elements as your budget allows.
Explore Tiny Homes
Tiny homes are an efficient and lower-cost alternative, often built with sustainability in mind. With their small footprint and minimal resource use, tiny homes offer a more affordable path to sustainable living.
Optimise Orientation, Insulation, and Shading
Whether you are building or renting, if possible choose a home with good North orientation. Additionally, in summer you can open up windows at night to naturally cool your home. You may also be able to install insulation, and seal any drafts. These adjustments can improve energy efficiency and comfort while working with what you currently have access to. In warmer climates, you can also install external shading of east and west facing windows. This reduces heat from the hot summer sun warming your home. This will increase your comfort and will reduce your artificial cooling requirements.
Practice Sustainable Habits in Any Home
Whether you’re renting or in a traditional home, small lifestyle changes can still make a difference. Composting, minimising waste, conserving water, reducing energy consumption, and buying locally are all impactful ways to live sustainably without building a new home.
So, is it worth investing in a sustainable home?
Yes! Building a sustainable home may come with a higher initial cost. But it offers long-term value that goes beyond just financial savings. The use of high-quality materials, custom design and energy-efficient features in sustainable homes supports a more eco-friendly lifestyle. We understand that building a new sustainable home isn’t within reach for everyone. There are still meaningful ways to contribute to a sustainable future. Sustainable choices, big or small, all make a difference in reducing environmental impact. Every choice, whether building new, renovating, or adopting sustainable habits, contributes to a positive environmental impact, helping create a better future for everyone.
