September 15, 2026
Christy Bolognani, Buildings Program Manager

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Affordability is top of mind for most of us these days. But what does it mean in the context of housing? Most of us hear “housing affordability” and conjure an image of Zillow listings, the purchase price prominently displayed in bold font. With the national median purchase price of an existing home hovering around $434K¹, it’s easy to see why housing affordability is a potent topic. But what actually makes a home affordable? Is it just a low purchase price? What about how much you pay every month in utility bills? What about the maintenance and repair costs stemming from poor construction? What about appliance replacement from inefficiency and poorly maintained equipment? While many market forces determine the price of a home (supply and demand, house size, zoning, neighborhood quality, amenities, etc.), housing affordability is about more than just the purchase price.

The current metric for housing affordability is price per square foot (SF), a measure of upfront cost borne by the builder. While intuitive from a builder or seller perspective, this inadvertently incentivizes building cheaply while ignoring what the homeowner will pay for over the life of the home, including utilities, insurance, maintenance, and repair costs. Houses built as cheaply as possible tend to have higher operating expenses.² If a home has a lower purchase price but is eye-wateringly expensive to operate for the rest of its life, is it still affordable? We believe the answer is a resounding “no.” Changing how we measure housing affordability has lasting benefits for not just homeowners and their families, but builders, developers, lenders, insurers, realtors, appraisers, and the entire home-buying ecosystem. A movement pioneered by Green Builder Media is underway called Reclaiming Affordability, which is bringing key stakeholders together to have honest conversations about how to change the way we think about housing affordability. Let’s take a look at why the current metric is broken. 

The current problem: Home performance isn’t part of the equation

Under the current price-per-SF model, two homes of comparable size and layout are valued similarly, regardless of how they perform. Home A, for example, could be built to the lowest standards using the cheapest materials, resulting in high utility bills and maintenance costs, while Home B could be built to the latest codes, with a tight envelope and the newest technologies, resulting in low utility bills and supporting grid reliability. From a price-per-SF perspective they may cost about the same, but are they equally affordable? As you can see, the value of energy efficiency, resilience, durability, and quality are missing from the equation. Sustainability is considered a cost under this methodology, rather than a source of value. This creates a lose-lose situation: homeowners pay more in ongoing costs, and developers and builders miss the opportunity to earn a premium for better-performing homes. Utilities, ratepayers, city governments, and others down the line also miss out on the benefits. 

So, what would a better approach look like in practice?

A new way forward: Value per SF

One solution to this value gap is shifting from a first-cost to a total-cost valuation, known as Value per SF. Such a change requires a whole new framework for calculating value, and a broader set of metrics to capture it. Green Builder Media highlights seven key areas for consideration.³

Value Per SF incorporates these metrics alongside first cost to paint a fuller picture of affordability. The benefits are enormous, and many stakeholders have something to gain from this shift: 

• Homeowners benefit from reduced utility bills, less maintenance and repair, better indoor air quality and comfort, better survivability in extreme weather conditions, and steady home value.  
• Builders can turn energy efficiency and performance into a profit center through increased sales and revenue, as well as differentiation from competitors focused primarily on first cost.
• Utilities benefit from overall load reduction as well as reduced peak demand and improved load management via grid-interactive technologies like battery storage and Virtual Power Plants. 
• Lenders and insurers reduce risk and make sound underwriting decisions when equipped with data showing which homes have lower operating costs and higher resilience.
• Appraisers and real estate professionals gain a standardized framework for communicating the value of performance, resilience, and durability that will allow these attributes to be visible and financeable. 
• Entire communities benefit from the resilience of a high-performance building stock and reduced economic impact from extreme weather.

Where we go from here

Changing the framework for how homes are valued is no small task, but the shift is already underway. Initiatives such as Green Builder Media’s Reclaiming Affordability Roadshow are taking the conversation to stakeholders directly and in person at major cities across the country, and the Southwest Energy Efficiency Project (SWEEP) is working to communicate home energy performance to homeowners using a standardized rating system, known as residential energy labeling.

Change will need to happen at the local level, in real estate brokerages, lending offices, construction sites, and open houses. Buy-in from every corner of the housing ecosystem will be required to ensure the transition is done properly and doesn’t leave anyone behind.

Add your voice!

Join us at a Reclaiming Affordability event, engage online, or reach out to us directly. Most importantly, if you work in the industry, start having these conversations with your colleagues. Together, we will crawl, then walk, and finally run towards a future filled with high-performing, affordable, and resilient homes and businesses.  

Upcoming event:

Leading from the Front 
Hotel Clio, Denver, CO
October 7-9, 2026
Email Sara Gutterman at sara.gutterman@greenbuildermedia.com for more information

1. https://www.nar.realtor/sites/default/files/2026-08/ehs-07-2026-summary-2026-08-11.pdf ↩︎
2. https://www.realtor.com/research/new-construction-total-cost-of-ownership-2026/ ↩︎
3. https://www.greenbuildermedia.com/blog/reclaiming-affordability-road-show ↩︎