For anyone tracking the real estate market in Portland these days, it’s clear a building resurgence is underway. Many Portlanders merely have to look next door or down the street to confirm that fact. Whether it’s a neighbor remodeling their home, a homebuilder tearing down an existing home to build a new one, or a developer building apartments in urban infill locations, Portland neighborhoods are changing.
These changes are clearly a harbinger of even more to come: according to Metro’s projections, the metropolitan region is set to grow in population by nearly 800,000 people by 2035. That’s a 30% increase over current numbers. This inevitable growth brings with it challenges and opportunities. Our local climate action goals call for a reduction in carbon emissions of 80 percent by 2050. Clearly, if we don’t improve the way we are – and will be – building housing to meet a growing population, it is highly unlikely we will attain these critical climate objectives.
Now we find ourselves at a significant crossroads in Portland’s real estate history. We at Earth Advantage think we should collectively grab hold of this moment and tap into our local know-how to do what we do best in this city: innovate for a better future. The Oregonian editorial staff recently opined the need for further residential energy efficiency is moot. However, the reality is that over the next 15 years we need to accelerate the number of home energy improvements to 600,000 and make Zero Energy homes the standard for new construction.
This was the idea behind PDX FutureGreen, the inaugural event we hosted at the Jupiter Hotel last week. With a crowd of real estate and building professionals listening intently, Multnomah County Commissioner Jules Bailey engaged a panel of sustainable building experts with the following question: “How do we accelerate, how do we get to scale, and how do you make it relevant to families in Rockwood?” In other words, how will our efforts to improve the durability, healthiness, and energy performance of our buildings happen faster, at the scale necessary to reach our climate goals, and in a way that is inclusive of all of our fellow citizens?
A few key points came out of the panels’ discussion that should be part of plans to meet our housing challenges:
Transparent information—such as a home or building’s energy performance information—is critical for the real estate market to make truly informed decisions.
- Clearly show the value of high-performance housing based on the ‘total cost of ownership’. What do lenders need to fully recognize that on average high-performance, low-energy cost homes and buildings are a lower default risk proposition? How do we show homebuyers that the efficient house is actually the more affordable one?
- Determine whether urban residential infill always has a positive climate impact. For example, if we replace one older home with one, two or even three new efficient ones, is that going to be an improvement in terms of overall carbon emissions?
- Outline a clear set of public policies that move us to an energy efficient future. It’s time to move on energy efficient building codes, disclosure of building energy performance, and incentives that allow for more affordable land development.
One clear takeaway from the discussion we had at PDX FutureGreen is that we have the capabilities here in Portland to lead on this issue and to lead now. At Earth Advantage we work everyday with partner organizations and building professionals to make buildings better while retaining (and often expanding) their profitability and return on investment. We see that as a sure first step in establishing a clear path forward to meet the great challenges our future holds.
