For nearly 60 years the prevailing trend in the United States has been away from urban areas. Cheap energy and the American passion for the automobile made suburban living an easy and appealing alternative to living in the overcrowded and polluted cities of post-World War II America. Yet the high prices of energy have exposed the glaring inadequacies ("What do you mean it costs $75 to fill my Buick?") of a suburban infrastructure built for the car. Consumer preferences are already beginning to lean toward greener and more energy efficient products; just try finding a Prius right now.
Demographics will also play a major role in shifting to a more urban future. As Christopher Leinberger in his Atlantic Monthly article said:
“When the Baby Boomers were young, families with children made up more than half of all households; by 2000, they were only a third of households; and by 2025, they will be closer to a quarter. Young people are starting families later than earlier generations did, and having fewer children. The Boomers themselves are becoming empty-nesters, and many have voiced a preference for urban living. By 2025, the U.S. will contain about as many single-person households as families with children.”
Because the population is growing, families with children will still grow in absolute number—according to U.S. Census data, there will be about 4 million more households with children in 2025 than there were in 2000. But more than 10 million new single-family homes have already been built since 2000, most of them in the suburbs.”
With an obvious oversupply of suburban developments, and a high demand for urban locales, it is likely that many developers will begin to shift their priorities to building higher density developments that conform to more stringent environmental standards closer to urban centers. One team of developers in Philadelphia is taking this idea in an interesting direction. The 100K House project is an experiment in urban design aiming to create a modern “green” house for less than $100,000 in construction costs.
According to the developer’s website and blog, the 100K House is to be built as urban infill in a rising Philadelphia neighborhood. Wedged between two houses in an 18 x 60 foot plot, the house will be LEED certified and utilize novel approaches to maximize energy efficiency. For instance, rather than installing air conditioners, which are costly both in upfront and energy costs, the developers are looking into alternative solutions to make the house livable during Philly’s relatively short, yet uncomfortably sticky summers. One possible solution they came up with is to couple a passive cooling system (composed of an 11-point system that includes energy-efficient windows and a white roof to deflect heat) with an electric dehumidifier to control that “I can’t breathe because I feel like I’m underwater” type of humidity.
The 100K House demonstrates that there are many opportunities for development outside of the traditional residential subdivision and big box commercial area mindset, and that building “green” can be accomplished on a budget. As the demographics continue to shift in favor of urban areas, it will be interesting to see how this is manifested in new investment opportunities. The field is wide open (or, as the case may be, sandwiched between two row homes) for innovation and entrepreneurship.
Labels: 100k House , green building , LEED
