Behavioral Economics is focused on understanding how people, with all of our foibles and inadequacies, disrupt the pleasant simplicity of a marketplace full of rational actors. It began as behavioral psychologists started applying their findings to economics and marketplace decisions. The field has gone mainstream, with many best-selling books and Nobel Prizes in economics going to pioneers in the field. However, most businesses have yet to truly understand how significant this is. The building industry, largely B2B focused, has been slower than many B2C markets to incorporate this thinking. Why? Because all that behavioral economics stuff is about the average consumer, not the savvy business person making decisions, right? Wrong. We are all human, and subject to the same flaws in thinking. This issue is directly relevant in building industry purchase decisions, and we will show you why.
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Posts By: Stacy Fitzgerald-Redd
What is “Proper” Insulation Installation?
Even the title of this blog adds confusion to a subject that, on the surface, doesn’t seem like it should be that complex. To say there is “proper” installation implies there is also “improper,” in other words just plain wrong. However, some think the assessment of insulation installation quality is in fact much more nuanced than that. Others prefer the more black and white approach. In the face of differences of opinion, where would most in the building industry turn for the final word? To the building code, of course. However, code language may only add to the ambiguity around this subject, and inconsistent code enforcement certainly does. In this blog, we explore the different definitions and terminology related to insulation installation, what code says about it (and what it doesn’t) and why all this matters for home construction, whether it’s code built homes or those meeting more stringent high performance targets.
Details »What Product Transparency Means for Builders
Farm to table. Sustainable sourcing. Menus with calories disclosure. Today’s consumers want to know what is in the products they buy, where they come from and how they are made. New research from Label Insight, which specializes in product data, shows that the issue of transparency has a huge impact on how consumers perceive brands. The bottom line is that the more transparent a brand is the more trusted it is and the more loyal its customers are. This means the trend towards disclosure presents both challenges and opportunities. While this trend has mostly been seen in consumable and personal care products, it is beginning to impact the residential building industry too, and builders can use this to their advantage.
Details »Lumber Cost Hurting? Think Advanced Framing
Even before the Trump administration’s announcement of an import tax on Canadian lumber there had been 22 percent increase[1] on the cost of lumber since the beginning of the year. These cost increases impact builder profitability and are expected to add an additional $1,236 to the cost of a new home for buyers, according to NAHB estimates[2]. While material cost increases are commonplace for builders, so is the desire to maintain profitability. Is it time then for builders who have spurned advanced framing in the past to implement it now? Here are three compelling reasons to revisit the practice.
Details »An Innovative Seal Tight, Frame Right Method
By Michael Schettine, Technical System Expert, AccuFrame
Roughly three-quarters of builders in U.S. states will soon have to comply with more stringent air tightness requirements of modern version of the IECC (either 2012/15 or 18). As builders seek to meet these requirements, they may be persuaded to believe that multiple and/or expensive products (like spray foam) are the only pathway to achieving the 3ACH 50 target. Testing conducted recently by The New York State Energy Research and Development Authority (NYSERDA) and a top U.S. research lab demonstrates that the 3ACH 50 blower door target can be met using an innovative air isolation management solution, that is not only effective, but less expensive than foam and doesn’t require evacuation of the trades.
Details »HERS=2 and ACH50=0.75 at Just $85/Sq. Ft.!
When Paul Torcellini, principal engineer in the commercial buildings research department at the National Renewable Energy Laboratory, decided to build his own home he admittedly had a bit of an advantage. As a building scientist and recognized expert in methods to achieve substantial whe building energy savings, Torcellini undoubtedly leveraged his experience to construct his 3,600 sq. foot Connecticut home to achieved a HERS score of 2 with a 0.75 ACH 50. The result: A finished product that garnered Torcellini a 2016 DOE Housing Innovation Award (read the full home profiled here). Paul’s was also the lowest cost house among all the award winners. His home demonstrates that builders who fully leverage solid building science practices can achieve high-performance, air tight construction while keeping costs in check.
Details »4 Tips to Ace Your Blower Door Test
Thirty-six states currently use a version of the residential energy code equivalent to the 2009 IECC specification or lower. Many of these states will soon act to update their residential energy code to the more modern versions of the IECC, which include more stringent air leakage requirements measured by blower door testing. However, many builders will find it difficult to meet the 3 ACH 50, as required in CZs 3-8 starting in the 2012 IECC, unless they properly train their tradespeople in building science and the basics of blower door testing, according to Robert Nelson, managing principal of Ener G Home Performance Consultants.
Details »5 Ways Millennial Buyers Aren’t So Different
Much has been made about the vaunted power of the Millennials to shape home sales in the coming years. These adults, born between the 1982 and 2003, will wield tremendous influence and comprise roughly 36 of the U.S. population by 2020 (77 million people). Much of what sociologists report about Millennials centers on the many ways they’re different from Boomers or Gen Xers, such as being more civic minded, collaborative and technologically savvy. And while marketers often focus on their differences compared to other generations, truly understanding this customer segment is about seeing both the similarities to and differences from other generations.
Details »Residential Energy Efficiency: The RX For Health
A report released recently by E4 The Future, which promotes residential clean energy and sustainability, examines the body of research supporting the considerable benefits of home performance/energy efficiency measures. The report concludes that not only do energy efficiency measures, such as increased insulation and air sealing, improved heating, and ventilation increase the comfort of the home, but also provide considerable occupant health benefits.
Details »Overcoming Barriers to SEE Building
By Thomas Peterson, Institute for Super Energy Efficient Building, Founder and President
The Institute for Super Energy Efficient Building
When I first became involved with energy efficient housing back in the 1970s I figured that such housing would quickly take off. It didn’t. I was determined to find out why.
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