Balancing Sustainability with Cost: A Flawed Debate?

Thoughts from Constructive 2024

Early in the agenda at this year's Constructive forum by Registered Master Builders Association , a key theme emerged around the economy and cost of building. It got me thinking that a commonly posed question of "balancing sustainability with cost" might be fundamentally flawed. Environmental and economic sustainability should not be competing priorities but rather complementary goals of a successful project.

Why don't we question the balance of other factors such as the size, finishes, and complexity of homes?

The issue of performance certificates came up, not so much by name, but by concept with one speaker suggesting that clients cannot be "smart buyers" without fully understanding what they're purchasing.

Chris Penk MP hinted at the possibility of the New Zealand building industry adopting a self-certification model similar to those used by plumbers and electricians.

And then there's the omnipresent issue of housing affordability in New Zealand. There seems to be at least some agreement that spending 50% of household income on housing is unsustainable.

Keynote speaker Michael McQueen offered a thought-provoking perspective on change. He suggested we should look at the slow but powerful tide rather than the loud and sudden crash of the current wave. McQueen emphasized the importance of curiosity over certainty and progress over precedence, warning that "best practice doesn't stay best practice for long." His advice to the industry was to prioritise the needs of future customers, over the needs of current ones.

Former Prime Minister Chris Hipkins highlighted the recent progress in social housing, noting that one in six current social houses were built in the last six years. However, he issued a stark warning: despite last year's record number of social houses built, next year we're on track to build none. Hipkins called for improved apprenticeships and ongoing training. There was support from some attendees for the retention of government workforce development councils to ensure continuity and quality in workforce training. Hipkins cautioned the current government against making changes for the sake of change, emphasising the need for stability in the industry.

I was part of a panel with Aidan Jury and Chris Litten where we discussed energy efficiency and specifically H1. We all agreed that in most cases, you don't need R 6.6 in roofs, Avoid the schedule method and instead use the calculation or modelling methods for a more accurate assessment. I think designers and builders should be more concerned about internal moisture, ventilation, and overheating and I encourage the use of tools like NZGBC's ECCHO the newly released Homestar Design Guide.

Bernard Hickey provided a broader perspective, predicting that New Zealand will continue to serve as a climate haven and refuge in the coming decades. He projected the country's population could reach 17-19 million by 2100, based on a 1.5% growth rate.

Sometime during day 1, host and MC Jehan Casinader announced that the OCR had been reduced by 0.25%, which may have lightened the mood slightly. It certainly underlined economics and cost as a dominant factor in the building industry.

I knew that much of the discussion was going to be about cost. It likely always will be, because building is expensive, and a house is typically someone's largest purchase. Rather than aiming for some elusive balance between cost and sustainability, I concluded my brief breakout presentation with the idea that adding in sustainability to a project will certainly add cost. Designing in sustainability from the start however, will add value.