Timber Buildings: Cost-Competitive Sustainable Real Estate
This report highlights the growing competitiveness of timber buildings in terms of both sustainability and cost efficiency. It demonstrates how mass timber reduces embodied carbon by up to 73% compared to steel and concrete, while also being increasingly financially viable. The report addresses misconceptions about insurance premiums and construction costs, arguing that timber is becoming a competitive alternative in real estate as demand for sustainable construction materials increases.
Key Takeaways
- Lower Carbon Emissions: Timber construction can lead to a 73% reduction in embodied carbon compared to concrete and steel.
- Financial Competitiveness: Timber buildings are now only 3% more expensive than concrete and 1% cheaper than steel in many cases, with further cost reductions expected as timber use becomes more widespread.
- Comparable Insurance Costs: Insurance premiums for timber buildings are becoming comparable to those for traditional materials, with further reductions expected as insurers better understand the risks.
How It Can Help You
This report is valuable for developers, investors, and policymakers who are:
- Looking to invest in or develop sustainable real estate with lower carbon footprints.
- Exploring the cost benefits of using timber compared to traditional building materials.
- Seeking insights into how insurance and financial markets are adapting to support mass timber construction.
Key Learnings
- Carbon Reduction Potential: Timber buildings significantly reduce carbon emissions, making them a key solution in the fight against climate change.
- Cost Efficiency: As the market for timber buildings expands, construction costs are becoming increasingly competitive with steel and concrete.
- Insurance and Risk: Misconceptions about the insurance risks of timber buildings are being addressed, paving the way for more affordable insurance premiums.
Date: May 2023
