From the Silicon Valley Business Journal

When SummerHill Homes’ largest housing project in San Jose passed the “green” building test with flying colors, the Palo Alto developer knew it would resonate among buyers.

Apparently the home builder was right. Even in a slow market, Parkwood, a 200-unit project on Samaritan Drive, has sold an average of eight homes a month since the project opened a year ago, according to the Ryness Report, which tracks new home sales in the Bay Area. Parkwood’s sales are way above the average rate in Santa Clara County, which is barely one new home per month per project.

Cheryl O’Connor, SummerHill’s senior vice president of sales and marketing, said green features that include extra insulation in the walls, insulated water pipes and high-quality paint, add about $5,000 to the cost of each house. But it’s not a cost that can be passed on to buyers in a market that’s off 15 percent compared with a year ago, she said.

“It’s hard to justify right at this moment,” O’Connor said. “In this market, some homes are even selling below cost. But we will keep [building green] because buyers are demanding it. There is no conversation at SummerHill to eliminate green features. It sells.”

Brian Gitt, president of Build It Green, said he has found that during this down cycle, builders are very receptive to green construction methods.

“A few years ago, builders couldn’t build homes fast enough and they had no reason to differentiate their product or change,” Gitt said. “Now is the time to retool and attend training. Builders are embracing green because it’s a point of differentiation. If offers competitive advantage.”

On Oct. 6, San Jose Mayor Chuck Reed applauded the project, noting that SummerHill did not build Parkwood with the intention of putting it through the GreenPoint Rated system developed by Build It Green of Berkeley. That was an afterthought.

“This project sends a message that green can be done and should be done,” Reed said. “If SummerHill can do it, then any builder can do it. This is a clear indication that the marketplace is driving green-built sales.”

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