 Green development has received a considerable amount of attention here in NYC where I teach, but this week an article in New York Magazine suggests that when you look at actual sales, "the economy has trumped the environment."
Being green doesn't provide insulation in the current situation," says appraiser Jonathan Miller, who thinks that though some consumers pick only green, most condo buyers consider sustainability a nice fillip rather than a deal-maker (or -breaker). "People thought, If you build it, they will buy, but what about the consumer? They're worried about their jobs, their compensation, and the economy."
The article offers a few caveats, including a predictably more upbeat assessment from "New York's First Certified EcoBroker."
In related news, skepticism is surfacing as to the real impact of a recently announced plan encouraging owners to retrofit buildings for energy efficiency. A major issue: the "split incentive problem"--while tenants could save money with increased energy efficiency, landlords would bear the cost.
There have been any number of glib surveys declaring that people will pay extra for green, but these mean relatively little in the real business world. The actual focus: how people are actually spending their cash.
|
About the Author
