Is passive house construction more expensive?

The question we hear all the time: "

“Is passive house construction more expensive?"

My answer? "It depends on what you're comparing it to." Usually followed by, "Most likely, yes, but you're getting a premium product."

But honestly? No one really knows.

Think of it like this: comparing a passive house to a standard build is like comparing the economy to business class on a 20-hour flight. Sure, business class costs more, but that extra comfort and enjoyment make a huge difference, especially on a long journey.

A passive house guarantees a level of health and comfort that conventional homes simply can't match. It's a premium product, and like anything premium in life, it comes with a price tag.

So, what's the premium?

Most estimates hover around 5%, but the data is murky. Some claim it's closer to 20%. But 20% more compared to what? A volume-built, bare-bones spec home? If that's the benchmark, 5% extra for a passive house is a steal!

Here's the thing: many conventional homes are poorly built. Basic specifications and installation guidelines are ignored, leading to discomfort, drafts, and sky-high energy bills. Does that mean a passive house, built with meticulous attention to detail and proper installation, should be penalised for doing things right?

Take windows, for example. Whether it's a basic window or a high-performance triple-glazed unit, the installation should be the same. Just because a builder cuts corners on a spec home doesn't mean a passive house builder should be punished for doing the job correctly.

Our good friends at Altereco Design actually did a study on this and recently analysed 18 of their recent projects (new builds and renovations). They found the average cost for a newly built passive house was 3.21% higher for a passive house compared to a high-performance home.

What about those fancy finishes?

A luxurious $200k joinery package can inflate the perceived cost of a passive house. But those are aesthetic choices, not performance-driven necessities. To truly compare costs, we need to strip things back to the essentials. Remove the cladding upgrades, the designer kitchen, and the fancy light fixtures – those things impact style, not performance.

Real-world Examples: Numerous case studies demonstrate that passive houses can be built within a reasonable budget. Some even achieve comparable costs to conventional homes when factoring in long-term energy savings. How do we know this? Well, it's because we have built four passive house projects in Melbourne. These examples often highlight the importance of smart design choices and efficient construction practices to optimise costs without sacrificing performance.

Stop comparing a Passive House to a spec home with costs

Trying to compare the cost of a spec home to a passive house is like comparing a burger from McDonald's to a gourmet burger from a top-rated restaurant. Sure, they both technically fall under the category of "burger," and they'll both satisfy your hunger. But the similarities end there.

That McDonald's burger is designed to be cheap and mass-produced. It might fill you up, but it's probably not going to be a memorable culinary experience. The ingredients are likely low-cost, and the focus is on speed and efficiency, not quality or nuance.

On the other hand, that gourmet burger is crafted with care and attention to detail. The chef selects high-quality, locally sourced ingredients. They consider the perfect blend of flavours and textures. The presentation is thoughtful, and the overall experience is designed to delight your senses.

Similarly, a spec home is often built to a price point with a focus on minimising costs and maximising profit margins. Materials might be chosen for their affordability rather than their durability or sustainability. Construction methods might prioritise speed over precision.

A passive house, by contrast, is built with a focus on quality, longevity, and performance. Materials are carefully selected for their energy efficiency, sustainability, and health impacts. Construction is meticulous, ensuring airtightness and optimal thermal performance.

Just as that gourmet burger offers a superior dining experience, a passive house provides a superior living experience. It's a healthier, more comfortable, and more sustainable home. While the upfront cost might be higher, the long-term value is undeniable. So, before you simply compare price tags, consider the value you're getting for your investment.

The Bottom Line:

No one has a definitive answer to the "cost" question. What we do know is that choosing passive house construction is an investment in a superior product. It's a home that prioritises your health, comfort, and energy savings. It's a home that pays you back in dividends for years to come, both in terms of quality of life and reduced running costs.

Ready to explore the possibilities of passive house design for your Melbourne home?

Connect with a passive house architect or passive house designer to bring your vision to life. And when it comes to building your dream, choose a passive house builder with the experience and expertise to deliver a truly exceptional home.

If you want to connect, head to our contact page and we would love to work with you on your project.

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