High Performance is the new Baseline

Ask a roomful of builders what makes a “better” building and you’ll get as many answers as there are projects. But step back and look at the trends across market cycles, codes and climates, and a few realities become impossible to ignore. High performance is no longer a niche; it’s the new baseline. And sustainability, once dismissed as a luxury, is increasingly tied to the business case for every builder and developer who wants to stay competitive.

Recent survey data from Home Innovation Research Labs is blunt: today’s builders aren’t chasing green for green’s sake. The best are after homes that are more comfortable, durable and affordable for their buyers, and they want third-party verification to prove those claims. Well-insulated envelopes (84%), energy efficiency (80%) and efficient HVAC systems (79%) top the list, because buyers ask about them, they control long-term operating costs and comfort drives repeat business. Comfort and affordability are non-negotiable, and features that don’t add value or control costs don’t make the cut.

Housing resilience is rising fast, with weather and fire resistance now mainstream even outside high-risk markets. Wellness, including ventilation and indoor air quality, is no longer just aspirational. Buyers are demanding it, and forward-thinking builders are responding.

Sustainability, water efficiency and third-party certification are what set top builders apart, especially when they translate into visible and measurable performance. Verification matters most when it’s tied to real-world performance. If a product or system delivers energy savings or solves a pain point, builders want that claim independently verified, not just promised. Nearly 70% of builders say third-party QA is “extremely” or “very important” for high-value features like insulation and efficiency. And that’s not just a compliance exercise: verifier field data shows that insulation is one of the most common places for installation mistakes. Independent verification isn’t bureaucracy; it’s the best way to ensure buyers get what they paid for, and builders protect their reputation.

Resilience and disaster mitigation are the next frontier for verification. Certification brings credibility, especially as buyers and insurers become more risk-averse. In markets where resilience isn’t yet a code requirement, a respected third-party mark becomes a real differentiator—proof that a home isn’t just built to spec, but built to last.

Let’s be honest: if the market allows it, you can always sell a lower-performing home. But that’s a short game. Codes and incentives are only getting stricter and buyers, especially the most valuable, long-term customers, are getting smarter about what performance really means. Certification and high-performance features are ways to reduce risk, minimize callbacks and stand out as the market shifts. They’re not just about “green;” they’re about building a business that lasts when “good enough” is no longer good enough.

Priorities shift by region and product type. In the South, resilience leads; in the West, water and carbon matter as much as fire resistance. Midwest builders focus on efficiency and cost. In the Northeast, stringent energy codes and advanced building standards are already the norm. The real opportunity here is modernizing older homes and layering third-party certification or deep green upgrades on top of an already high baseline. Builders who go beyond code in this region can differentiate even in a mature, regulated market.

For many buyers, if they can’t afford a feature, it’s simply not an option. But every dollar saved on utilities is a dollar that builds equity instead of slipping away on bills. In the luxury and custom market, buyers will invest in wellness, air quality, and high performance, but they expect clear proof and certifications that actually matter in the real world. Small builders need simplicity, fast payback and minimal risk. Large builders use third-party verification to manage risk, standardize quality and prove value at scale. In every segment, the same principle holds: prove it, don’t just claim it.

NGBS Green Certification is proof that the market is moving. NGBS Green keeps growing, with more homes earning certification every year, from the accessible Bronze level to the more rigorous Silver and Gold levels. This isn’t just a box-checking exercise. Every level of NGBS Green requires performance that can be measured and verified, whether you’re focused on basic energy efficiency or pushing for best-in-class resilience and indoor air quality.

That tiered approach is part of what’s driving adoption. Builders can enter at Bronze and move up as market or project demands evolve. Silver and Gold levels are increasingly visible as badges of leadership, proof that a builder isn’t just meeting code, but exceeding it, with verified performance across energy, water, health and resilience.

Michelle Foster is the Vice President of Home Innovation Research Labs, NGBS Green certification program. She may be reached at mfoster@homeinnovation.com 

This column was featured in our November/December issue of Green Home Builder, Read more here