10 Reasons why Not building a high performance home is a bad investment

When people think about building a home, they often ask, “What is the cost per square foot?” Then they quickly calculate how many square feet they can afford with their budget. However, the truth is that the cost per square foot can vary a lot, depending on who builds the house and how it's built.

Instead of just focusing on cost, it's important to see your home as a big investment—not just for selling later, but also for your health and happiness. That’s why building to high-performance standards is the best option. Finding a builder who can make your home functional instead of just big is essential.

Building codes are updated every few years, but remember, these codes only tell you the minimum requirements to pass inspections. Think about that: the minimum is the lowest you can go. Would you really want to aim for the least amount in other parts of your life? Probably not—like in your education, the food you eat, or the returns on your investments. So, why would you do that with one of the biggest purchases you’ll make in the next 30 years?

In North Carolina, homes can be built according to outdated codes, like those from 2009 and 2015. Although new building codes are written for 2024, they aren’t in effect yet. This means that some homes are being built to standards that could be almost 20 years old! Even if you decide to build according to the new 2024 codes, you’re still just meeting the minimum.

Many builders take advantage of outdated codes. They don’t have to build better and more efficient homes but can still charge current prices. Remember, a good investment looks ahead. If you're going to build a home, it’s important to prioritize the quality and function over just square footage—especially if you think about selling it later or passing it to your family as an inheritance or rental property.

The strength and quality of the home you build affect both your wallet and your health, as well as the health of our planet. Investing in a high-performance home is smart because it means better returns, comfort, and sustainability. When looking for a builder, choose one who believes in high-performance standards, focusing on making your home both functional and enjoyable to live in. Your home should not just be a shelter; it should also be a place that helps you live a happy and healthy life.

If you’re considering building a new home and want to make a good investment, fill out a contact form on our website and let’s get the conversation started.

Here are the top 10 reasons why not building a high-performance custom home can be considered a bad investment:

1. Higher Energy Costs
   Traditional homes typically have higher energy consumption, leading to significantly higher monthly utility bills compared to energy-efficient high-performance homes.

2. Decreased Comfort
   High-performance homes are designed to maintain consistent indoor temperatures and improved air quality, while traditional homes may suffer from drafts and temperature fluctuations.

3. Lower Resale Value
   As buyers increasingly seek energy-efficient and sustainable features, traditional homes may face decreased demand and lower resale values compared to high-performance homes.

4. Environmental Impact
   High-performance homes are built with sustainable materials and energy-efficient systems, reducing their carbon footprint. Not investing in such a home means contributing to higher environmental degradation.

5. Maintenance Costs
   High-performance homes often incorporate durable, high-quality materials that require less maintenance over time. Traditional homes may incur more frequent repair and maintenance expenses.

6. Health Implications
   Poor indoor air quality in traditional homes can lead to respiratory issues. High-performance homes incorporate better ventilation and materials, promoting healthier living conditions.

7. Limited Incentives
   Many governments and utilities offer incentives for building energy-efficient homes, including tax credits and rebates. Not taking advantage of these can mean missing out on significant savings. *During the current administration, many of the incentives have been cancelled or will expire and not continue, so taking advantage of them as they still exist is essential to getting value for your investment.

8. Obsolescence
   As building codes and standards evolve to require better energy performance, traditional homes may become obsolete in the market, requiring costly retrofits to remain compliant.

9. Compromised Safety
   High-performance homes often utilize advanced building techniques and materials that enhance structural integrity and resilience to natural disasters, which may not be the case for traditional homes.

10. Loss of Long-term Savings
    While high-performance homes may have a higher upfront cost, they typically yield long-term savings through lower energy bills, reduced maintenance, and increased durability, making traditional homes less financially sound.