Lisa White

Understanding the differences between sustainable building practices is almost as difficult as it is important for real estate agents.

There are many certifications and qualifications that buildings can be labeled with – some supported by legitimate certification bodies and some not – including green, net-zero, and passive buildings (often called “passive house”). The requirements for achieving these various recognitions vary widely, as does their impact on the occupant experience. A house or building marketed as “green” may have efficient light bulbs and a modest solar panel, but it may also have leaky windows and a gas-guzzling furnace in the basement.

When it comes to sustainable design and construction, there are many levels. You’ll need to understand them, otherwise you risk falling behind.

We believe passive construction is the most beneficial path chosen by builders, organizations and municipalities for its ability to provide comfort, resilience and significant reductions in resource demand for heating and cooling. It is also the path to achieving net zero carbon emissions.

What is Passive House certification?

Passive construction is a holistic methodology for designing and constructing efficient, comfortable and healthy buildings using five fundamental principles. The principles are: continuous insulation, an airtight building envelope, efficient windows, balanced fresh air ventilation and minimized mechanical systems.

Some construction teams will only employ a few of these principles and call a project “passive house,” but the only way to guarantee results is to have a project certified. Phius (Passive House Institute US) certifies the majority of passive building projects in North America with our globally applicable, locally adapted passive building standard.

The process of certifying a project with Phius is thorough and collaborative, beginning at the design phase and continuing through third-party testing of the completed home or building.

Phius certified homes and buildings also save money on utility bills (around 40-60% on average) and provide a particularly peaceful and comfortable indoor environment thanks to the airtight building envelope and high performance windows.

These same qualities make Phius buildings extremely resilient to weather events and grid outages, as they have been proven to maintain habitable indoor temperatures much longer than normal buildings in extreme heat or cold. By using much less energy than normal buildings, Phius buildings also make it much easier to offset energy consumption with solar production.

These buildings are built for the future, and that future could arrive sooner than you think.

A big differentiator for buyers and renters

Phius has been enrolled in incentives and codes across the country, with adoption significantly increasing in recent years. The majority of municipalities in Massachusetts have implemented a code that requires passive building certification for all buildings larger than 12,000 square feet. Thanks to this and other policy advancements, Phius saw a 49% year-over-year increase in certifications between 2022 and 2023, with 2024 on track to continue the trend.

Phius certification has proven to be a differentiator in the market. Market-rate developers find that tenants are willing to pay a premium to live in Phius buildings and that municipalities choose to dedicate government funds to encourage the construction of Phius projects.

These aren’t just regular old buildings with fancy windows: Phius buildings are strategically designed and constructed to maximize comfort and resiliency while minimizing energy consumption.

Passive construction is moving ever closer to the mainstream, and it’s extremely important to understand the unique benefits it offers, otherwise you risk being left behind.

As a real estate agent, it is essential to understand this added value and be able to convey it to potential buyers and tenants – this is where Passive Building Foundations training comes in.

How to find out more

The self-paced Passive Building Foundations course provides fundamental training in the basic concepts of Passive Building, High Performance Building Features and Phius. No technical expertise or certification is required to complete the training, as it has been designed specifically for people who are not necessarily going to build these houses, but who benefit from knowing how they work and their impact on their inhabitants and l ‘environment. .

Anyone who completes the training and passes the one-hour exam is recognized as a Phius Associate, a credential that indicates a basic level of knowledge in passive construction, building science, Phius standards, and more.

The “Business Case” and “Policy” modules should be of particular interest to the real estate community. They explore many of the financial benefits of passive construction while demonstrating how and why certain financing models and strategies are successful.

As passive building practices and Phius certification continue their exponential growth in the market, understanding and explaining their value will become a necessary skill for real estate professionals. The move toward sustainable building practices is not just a trend; it’s a development that responds to environmental concerns and changing consumer preferences.

For real estate agents, staying informed about passive construction principles is crucial to providing value to clients. Agents who can effectively communicate the benefits of energy-efficient homes will have a significant advantage in this evolving market. By adopting this knowledge now, real estate professionals can position themselves to lead a more sustainable future.

Lisa White is co-executive director of Phius, a non-profit organization that maintains the standard of passive house construction and both certify buildings and materials, as well as train and certify professionals.