Home Buyers to 'Green' Builders: Show Me the Savings

UBS analyst David Goldberg said most major builders will continue to invest in green developments. But they'll likely need to find cheaper ways of doing it next year.

"If it cost more to put solar panels on there, are you still exploring it? I'd say, maybe not," Goldberg said. "But there are a lot of things you can do in communities that are environmentally friendly."

For example, builders could add Energy Star-rated appliances in homes that can cut utility bills without adding much to the overall price tag, he said.

The economy may have left consumers jittery, but those looking for new homes will still look for energy efficiencies, especially if a builder can show how much it will lower their monthly utility bills.

"If it's a house that has leaky windows, and not enough insulation, I think people will pick up on that," said Elliott Pollack, a real estate consultant in Scottsdale, Ariz.

Phoenix homebuilder Ed Gorman agrees.

"Everybody wants to be green, but nobody wants to pay for it," said Gorman, president of Modus Development. "But when you talk about putting money in our pocketbook, that's important to them."

Gorman's "Galleries at Turney" project, two rows of pricey, ultramodern town homes, sold out this year while similar projects struggled to find buyers.

His secret? The Galleries were equipped with a unique set of cooling systems that lock out Arizona's oppressive summer heat.

"There's sex appeal in good design," Gorman said. "We're probably 50 percent more energy efficient than most buildings of this size."

His boxy, all-gray Galleries showed that people will pay for smart, eco-friendly designs even when there are cheaper alternatives nearby.