The Ultimate Guide to Sustainable Building Materials

Every five days, the world constructs new buildings equivalent to the size of Paris. Yet, most of these are designed to last only a few decades before needing replacement.

Traditional ground-up construction sometimes creates inherent waste, and materials like cement and steel are often major sources of carbon emissions. The new construction industry itself accounts for roughly 37% of global CO2 emissions.

As we continue to build at such a rapid pace, how can we prioritize eco-friendly materials and green construction practices?

In this guide, we address this question, and show developers and real estate investors (REIs) that beyond eco-friendliness, choosing sustainable building materials might also be a smart financial move in the long run.

You'll learn about 12 sustainable building materials, and how to calculate the potential life-cycle costs of sustainable new construction projects. Let's get started!

What makes a building “sustainable”?

A sustainable building is one that minimizes environmental impact throughout its lifecycle—from where the materials come from to construction, operation and maintenance, and eventually to what happens to the building decades from now (demolition or reuse). True sustainability goes beyond the upfront costs of construction. It is a continuous process that covers a building's entire life. 

Why sustainable construction matters

• The U.S. ground-up construction industry generated up to 600 million tons of debris in 2018. About 144 million tons of these were sent directly to landfills—more than twice the volume of municipal solid waste. For developers and REIs, this isn’t just an environmental issue; it’s potentially a financial one. Every material that isn’t reused or recycled means lost value and higher disposal costs, directly cutting into profits.
• Future regulations are trending towards net-zero requirements (new building codes in some progressive municipalities have already incorporated sustainability requirements).
• New construction significantly impacts the environment, contributing to about 40% of energy-related CO2 emissions, consuming 50% of extracted materials and 33% of water, and generating 35% of global waste. With global building floor area projected to double by 2060, a shift toward green materials may be crucial to prevent worsening environmental problems.
• Certified energy-efficient homes command a 2-8% higher selling price in most markets, according to multiple studies compiled by ENERGY STAR.
• Rising utility costs could present a financial incentive for people who opt for green construction. The U.S. Energy Information Administration reports that electricity prices have increased 2.85% annually over the last 25 years—from 8.17 cents per kWh to 16.48 cents.
• Increasingly frequent extreme weather conditions could require resilient design.
  
  

Key components of sustainable buildings

There are four components that make a building sustainable:

1. Energy efficiency: Pay attention to the investment properties energy performance after it's built (i.e. measure its energy consumption). With rising utility costs, energy-efficient buildings could reduce the energy needed for heating and cooling by using a combination of superior insulation, meticulous air sealing, and smart design.
2. Material sustainability: This refers to the environmental impact of the materials used to build an investment property. A key factor is “embodied carbon”, which is the total greenhouse gas emissions from material extraction, manufacturing, and construction. To improve material sustainability, consider choosing low embodied carbon materials, renewable or recycled content, and non-toxic materials with low to zero VOCs for your new construction investment properties. You could also reduce transport emissions by sourcing materials locally.
3. Climate resilience: Designing your new construction investment property with resilient materials could offer protection against external weather threats like heat, storms, and floods.
4. Long-term durability: Sustainable buildings often use durable materials that could last decades, not years. This could mean lower maintenance costs over the investment properties entire lifespan.
   
   

What are sustainable building materials? (And why traditional materials might fall short)

Sustainable building materials are products that could minimize environmental harm across all stages of their lifecycle, from production to reuse or disposition. These materials have some or all of the following qualities:

• Low embodied carbon
• Renewable or recyclable content
• Durability
• Low/zero VOC (volatile organic compounds).

Why choose sustainable building materials? The environmental cost of traditional ground-up construction is becoming a significant problem, largely due to the amount we build. For example, cement production contributed around 8% of global CO2 emissions in 2022 (around 1.6 billion metric tonnes).

By 2050, the cement industry's total emissions is projected to more than double to around 3.8 billion tonnes annually. And cement is just one example. Other materials like steel, plastic, and asbestos also come with high carbon footprints. To potentially minimize environmental harm, the construction industry might need to drastically shift to sustainable alternatives or invest in large-scale carbon capture technologies.

With that said, no new construction building material is perfect. All have environmental costs - from mining and manufacturing to transport. Sustainable construction isn't about finding the zero-impact materials—it's about choosing building material options that balance the best performance with the lowest environmental impact ratio for your specific climate and budget.

First cost vs. life cycle value: are sustainable building materials affordable?

Some eco-friendly materials could have a higher initial price tag than conventional new construction material options. But focusing on upfront costs could be misleading. Instead, it could be wiser to consider the Total Cost of Ownership (TCO). 

Consider this powerful statistic: Green investment properties could reduce operational costs by up to 37% through lower energy, water, and maintenance expenses. The real cost of a new construction building project is the total amount you'll spend on it over its entire life, which is often far greater than any construction premium. 

The holistic cost approach to sustainable construction

A new build is an investment, and understanding its true costs and returns, often requires a holistic view, especially with sustainable construction. Here’s how to calculate the real value:

Step 1: Calculate upfront costs — This is your initial material + labor cost. For example, cork insulation might cost two to three times more than standard fiberglass. Don’t let this immediate figure deter you; it’s only part of the investment picture.

Step 2: Subtract the savings — Factor in the indirect savings in other areas. For example, better insulation allows you to install a smaller, less expensive HVAC system.

Building America's research shows how increased insulation and air sealing enabled them to cut their air conditioner size by 1-2 tons, saving an average of $1,000 per home for Tommy Williams Homes, a developer in Gainesville, FL. In some cases, builders even achieved “negative added costs,” delivering a more efficient, higher-quality home for less money than a conventional build.

Step 3: Factor in long-term operational savings — Project the predictable, year-over-year savings from operational efficiency (i.e., lower energy, water and maintenance expenses). When you look at these savings over 5, 10, or 20 years, it becomes clear why energy-efficient properties command a 2-8% price premium, potentially increasing your rental yield and resale value.

Step 4: Consider durability and resilience — Account for unpredictable, high-cost events that could eat up your initial savings. How much would it cost to replace vinyl siding after a hailstorm versus using fiber cement that lasts 50+ years? Investing in resilience could protect your investment properties and minimize future repair expenses.

12 sustainable building materials worth considering

Here are 12 practical green building materials categorized by use case and climate suitability:

Natural & renewable materials

1. Bamboo

• Best for: Flooring, structural framing in areas prone to natural disasters (like earthquakes and hailstorms)
• Why it works: Bamboo renews itself incredibly quickly. It matures within 3-5 years versus decades for timber.
  
  Its strength-to-weight ratio equals or exceeds that of the conventional materials we associate with strength and permanence like steel and lumber. Its flexibility and fibrous nature make it highly resistant to seismic activity. In 1991, bamboo houses withstood a 7.6 magnitude earthquake in Costa Rica while concrete structures failed.
• Climate consideration: Works in all climates.
  
  

2. Straw bale

• Best for: Walls in hot, dry climates (Southwest US).
• Why it works: This low-cost agricultural byproduct could outperform conventional materials when it comes to thermal insulation, with insulation values between R-30 and R-40 according to lab tests.
  
  Research shows that in hot, dry regions, straw bales could reduce indoor air temperatures by up to 10.26°F during peak heat. Properly built straw bale homes could require minimal to no air conditioning.
• Cons: Labor intensive installation, requires proper moisture management.
  
  

3. Hempcrete

• Best for: Insulation, non-load-bearing walls.
• Why it works: This is a building material that cleans the air. Research shows that hempcrete could sequester 110kg of CO2 per cubic meter (accounting for the CO2 emissions during lime binder production). This makes it carbon-negative. Not only is it an active part of the climate solution, its porous nature could regulate humidity and prevent mold growth, while its lime coating provides fire resistance.
• Climate consideration: Works best in humid climates.
• Cons: Not load-bearing, slower curing time than conventional materials.
  
  

4. Cork

• Best for: Flooring, insulation
• Why it works: With cork, you get a high-performance material from a single tree without killing it. Cork oak regenerates its bark every 9 years. Trees can live up to 200 years and barks can be harvested 15-18 times from each tree.
  
  Aside from being a regenerative resource, cork's thermal conductivity (0.036-0.065 W/m·K) outperforms many synthetic insulators, and it is naturally water-resistant and fire-retardant.
• Cons: Higher cost and limited availability in U.S. markets compared to conventional alternatives.
  
  

5. Rammed earth

• Best for: Walls, foundations in hot/cold climates.
• Why it works: Although an ancient solution, rammed earth has historically been used to create durable structures. When properly stabilized, rammed earth walls could last centuries.
  
  It has a high-density thermal mass which absorbs heat during the day and releases it at night. This alone could cut your heating and cooling costs for the life of the investment property. Plus, it has virtually zero transportation emissions since it uses local soil.
  
  

Recycled and reclaimed materials

6. Recycled steel

• Best for: Structural framing, beams, columns.
• Why it works: Recycling one ton of steel avoids 1.5 tons of CO2 emissions, while eliminating the need for these raw materials: 1.4 tons of iron ore, 740kg of coal, and 120kg of limestone.
  
  Judging by these financial and environmental savings, it's easy to see why steel has become a superstar of the circular economy. It's also worthy of note that recycling steel doesn't sacrifice its strength or performance. In fact, structural steel produced in the U.S. contains 93% recycled content on average.
  
  

7. Reclaimed wood

• Best for: Flooring, beams, siding.
• Why it works: Reclaimed wood might be stronger than new lumber. Janka hardness tests show that reclaimed wood scores up to 40 points above new lumber in hardness.
  
  This is because reclaimed wood comes from slow-growing, old-growth forests, and has an inherent strength that can't be compared to today's fast-farmed lumber. Apart from this, it has had more time to lose its moisture content.
• Cons: Sourcing requires time and planning, although specialty salvage yards and semi-automated wood processing machines are making it more accessible.
  
  

8. Recycled plastic lumber

• Best for: Decking, fencing, non-structural applications.
• Why it works: Instead of plastic waste going into landfills, this presents a better and high-performance alternative. It is a sustainable substitute for wood in non-structural applications. Unlike wood, recycled plastic lumber is resistant to humidity, corrosion, insects, and requires no chemical treatments, sealants, or painting. This means it has lower lifetime maintenance costs.
  
  

9. Fiber cement

• Best for: Siding, roofing
• Why it works: Fiber cement is made up of a combination of cement, sand, and cellulose fibers. This makes it exceptionally resistant to warping, rotting, fire, and pests.
  
  Its incredible durability and long lifespan (may last 50 years or more when installed properly) make it a sustainable choice over the long haul. Its upfront environmental costs are outweighed by the long term benefits that come from resilience and massive reduction in replacement waste.
• Cons: While it incorporates recycled materials and has a long service life, fiber cement's production process carries a higher environmental footprint than some alternatives.
  
  

Innovative low-carbon and low-VOC materials

10. Fly ash concrete

• Best for: Foundations, slabs where concrete is necessary.
• Why it works: Research shows 25% fly ash replacement produces concrete slightly stronger than Portland cement alone (86.62 MPa vs. 84.09 MPa).
  
  By replacing up to 25-30% of cement with coal combustion waste, it could turn one industry's waste problem (coal combustion waste) into another industry's solution. Using fly ash also cuts carbon emissions. Each ton of fly ash used avoids approximately one ton of CO2 emissions (from traditional cement production).
  
  

11. Mass timber (CLT/Glulam)

• Best for: Structural framing in multi-story investment properties
• Why it works: Mass timber is a sustainable alternative to steel for multi-story framing. Yale research found that CLT (Cross-Laminated Timber) sequesters (locks away) carbon in both growing forests and long-lived buildings.
  
  Aside from its environmental benefits, using this material could offer advantages like shortened project timelines and smoother site logistics because unlike steel, it has a lighter weight and is faster to install.
  
  One project that employed CLT completed installation in under two weeks, with 25% faster procurement and an 80% reduction in construction traffic, while avoiding 238 tonnes of CO2 emissions. 
  
  

12. Low- and Zero-VOC paints

• Best for: All interior painted surfaces
• Why it works: Traditional paints release volatile organic compounds that degrade indoor air quality for months after application. Zero-VOC paints (certified under standards like Green Seal GS-11) eliminate this off-gassing while delivering the same performance as traditional paints and at similar price points. This could be a low-hanging fruit upgrade for flippers seeking healthier properties.
  
  

Conclusion

We hope this guide has shown you that sustainability goes beyond a moral obligation. It could be the key to building properties that are superior, resilient, durable, and potentially more profitable (due to lower energy costs).

Want streamlined financing for your new sustainable building project? Get pre-qualified online today.

Frequently Asked Questions (FAQs)

Q: What are sustainable building materials?

A: Sustainable building materials are materials used in ground-up construction that may have a lower environmental impact compared to traditional options. This could mean they are made from renewable resources, require less energy to produce, help reduce waste, or improve a building's energy efficiency. Examples that could be considered include cross-laminated timber (CLT), low- and zero-VOC paints, reclaimed wood, recycled steel, hempcrete, bamboo, and rammed earth.

Q: Are sustainable building materials more expensive?

A: It depends. Some materials (like reclaimed wood and recycled steel) could cost the same or sometimes less than conventional options. Others like hempcrete could cost more upfront, but deliver savings in the form of lower heating and cooling costs. So the key is holistic design that uses money saved from some components (e.g. a smaller HVAC system) to offset the cost of others.

Q: What is the strongest green building material?

A: The strongest material will depend on the job it needs to do. Bamboo and recycled steel offer exceptional strength, while rammed earth offers extraordinary durability (it could last centuries when installed properly).

Q: Is reusing materials economical?

A: Sometimes. Deconstructing old buildings for materials can be labor-intensive, so labor costs are a real factor right now. But with landfill costs increasing, this option is becoming more viable, especially when you add in the savings from salvaged materials and transport.