Outlook Not So Sunny for Green Builder

First the good news for Lennar Homes: The home builder was awarded the Solar Electric Power Association's (SEPA) 2007 Award for Solar Business Achievement. The company is building communities with solar power as a standard feature, include 2,000 new homes in the Sacramento area, and was recognized for partnering with utilities on solar power.

The new homes use SunPower SunTile solar power that is integrated with the roof instead of being a free-standing array. The homes also include radiant barrier roof sheathing to reduce cooling costs and energy efficient windows and frames. Lennar opened its first solar community in February.

Now, the bad news: The company had its worst quarter ever (53 years) in Q3 of this year, losing more than half a billion dollars. Lennar has laid off more than a third of its workforce. If that weren't enough, a group of new standard Lennar homeowners in Austin, Texas have set up a website highlighting the shoddy construction, including cracked foundations, mold, and nails popping out of ceilings.

Lennar is caught up in a nationwide home buying crunch that is causing many builders' profits to collapse. Sales of new homes dropped 8.3 percent between July and August, according to the U.S. Commerce Department, and median sales prices dropped during the last year by 7.5 percent, the biggest fall off since Lyndon Johnson was president.

It is encouraging to see a builder standardizing on solar energy in its new developments, but cutting corners because of financial stress is obviously unacceptable.

Reading about the Sacramento development made me think about the conflict for home buyers who want to live sustainably. You can buy a new home with solar, energy efficient windows etc. and live in a planned community that more than likely is several miles from shopping and public transit. Or, you can buy an older house that is not as efficient, but is located in a more urban area where you don't have to drive very often and can get a broader cultural experience. It is a hassle to retrofit an existing home with new windows, water and heating and cooling systems, so there is appeal to buying a ready-made efficient home. But getting the car to run every errand contrasts the sustainable ideal. What's a sustainable-minded person to do?