Reaching for the stars: green construction cost premiums for Homestar certification

Rochelle Ade and Michael Rehm

Construction Management and Economics, 2020, vol. 38, issue 6, 570-580

Abstract: The assumption that undertaking certification, using a green building rating tool, will increase capital construction cost has been well studied in commercial buildings with mixed results, but less attention has been given to the much larger residential sector. This paper studies New Zealand’s Homestar residential green building rating tool and estimates the cost premium associated with 6-Homestar certification by analyzing the actual capital construction costs of 718 newly built homes in Auckland, New Zealand. To undertake this research, the authors contacted and collected actual capital construction costs from builders and developers of recently constructed single-family homes across Auckland. Given the sensitive nature of property-level construction cost data, this study marks the first development and application of hedonic cost modelling to analyses actual construction costs of single-family homes. The authors find a 12% cost premium for 6-Homestar certification, comprising an 11% hard cost premium and 1% in additional soft costs.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/01446193.2019.1640370 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:conmgt:v:38:y:2020:i:6:p:570-580

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/01446193.2019.1640370

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().