Affordable Home Builder Demand for Green and Certified Wood Products

Abstract

ABSTRACT Annual new housing starts in the United States decreased dramatically between 2005 and 2012. Consequently, products that are heavily tied to new housing starts, such as flooring, cabinetry, and moulding produced from Appalachian hardwoods, have suffered a corresponding decrease in demand. There may be opportunities to increase demand for these products, however, as demand in the green building sector increases. The present study evaluated the demand for certified wood products (CWPs) and green-labeled wood products in the central Appalachian affordable housing sector in 2011. The study also identified price premiums that affordable home builders were willing to pay for CWPs and green-labeled wood products. Results indicated that 50 percent of affordable housing respondents were planning future CWP purchases. Results also indicated that 62 percent of affordable housing respondents followed some type of green building standard. Additionally, more than 70 percent of affordable housing respondents suggested a willingness to pay an additional percentage for CWPs and local wood products. The use of CWPs was found to result from a combination of builder and homeowner preference. Last, of the housing builders who looked to purchase CWPs locally in 2011, only 17 percent were not able to locate the materials for purchase. The low percentage of unsuccessful procurement suggests CWPs are well distributed in areas near affordable housing projects in central Appalachia.