For anyone looking to buy a home, the sticker price itself can be a big shock, and then add in today’s interest rates and insurance.
Rob Howard hopes buyers and developers will remember that these aren’t the only factors when it comes to the cost of living there.
“We know energy costs will only continue to rise, so having a home that uses energy efficiently just makes sense,” he said. “It literally pays for itself over time.”
It’s part of the mission behind his development company Howard Building Science, to build sustainable homes that are affordable for the people who live in his community.
“Where are the starter homes for people trying to buy their first home?” he said. “And what are the options for people who have not saved much money for their retirement?”
The Duke Street Cottages in Granite Falls are Howard’s answer: 11 new construction homes built to the Department of Energy’s Zero Energy Ready Home standards, all priced under $270,000.
“We are trying to prove that feasibility is sustainable,” he said.
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It’s a step above what you might find in an Energy Star certified home. The DOE standard requires the highest standards in efficiency, insulation and air quality, while also equipping homes with the infrastructure to add a solar panel system or EV charging station in the future without electrical upgrades.
“They have more insulation, they’re more airtight, better windows, better doors and a high performance mechanical system,” Howard said.
His homes also feature the most efficient appliances he could find: a ductless heat pump system, an induction cooktop and a heat pump water heater.
DOE zero energy ready homes are intended to be at least 20 percent more efficient than the typical new home built to code. Energy Star Homes are at least 10 percent more efficient. Howard expects his homes will rarely, if ever, see a monthly energy bill over $100.
The other side of the coin is the costs. In North Carolina, the average price of a home is $363,000, while the median household income is about $67,000.
To ensure he could build these energy-efficient homes and sell them for less than $300,000, Howard said he built them smaller than the typical new construction homes coming onto the market.
“Most of these are two bedrooms and one bathroom, about 800 square feet,” he said.
To compensate, he built the houses as a small neighborhood. All houses are located opposite each other with a large green courtyard. The parking lot and driveway are located behind the house.
“Your front porch acts as an outdoor living room, and you know, you can easily communicate with your neighbors and you can have that sense of support that we’ve really lost in some senses in some suburbs,” he said.
Still, cost was the main driver behind North Carolina’s decision not to tighten its building codes to more energy-efficient standards. House Bill 488 froze the state’s building codes until 2031 after the North Carolina Home Builder’s Association argued that stricter codes would increase by about $20,000. It was passed in 2023 over a veto by Governor Roy Cooper.
Howard, who serves on the NC Building Code Council and has advocated for stricter housing standards, disagrees. He said it costs about $7,000 per building to bring his homes up to ZERH standards, which is largely offset by the $5,000 tax credit available for meeting those standards.
“That’s just a scare tactic,” he said.
Howard said he is even more disappointed with the move to freeze state code standards for the next seven years.
“We’re falling behind, and the reality is if you leave that behind for even 5,6,7 years, it seems like an even bigger leap to try to update your code,” he said.
Builders can choose to adopt these energy-efficient standards as a selling point in themselves, but Howard worries this will eliminate affordable options. Although the ZERH standards are too new for much construction data, 190,000 Energy Star homes were built last year. They now make up 12 percent of all American homes.
As for his homes, he says the demand speaks for itself.
“I have currently sold eight of these homes. Seven of them are already occupied,” he said. “Most of these homes have been sold before they are finished.”
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