Figure 2.43 Comparison of Baseline and Sustainable Neighborhood Scenarios Annual Life-Cycle Costs per Household

Figure 2.43 Comparison of Baseline and Sustainable Neighborhood Scenarios: Annual Life-Cycle Costs per Household

Source: Fort St. John (2009).

that the city will carry approximately 20 percent of the service costs and pass 80 percent on to the developer. Municipal costs and revenues are thus preliminary. However, once the spreadsheet model has been set up, it may readily be updated to test more detailed scenarios before decisions are fi nalized.

LCC helps clarify the greater aff ordability and value of sustainable options In the sustainable neighborhood scenario, the eff ects on home prices and operating costs are not explored in detail. Clearly, the compact development form results in savings on municipal services per household that may be passed on to residents through lower purchase prices or rents. In addition, the sustainable neighborhood scenario assumes smaller home sizes that reduce capital costs per household. For example, a typical minilot duplex may be around 120 to 200 square meters (1,300 to 2,200 square feet); this compares with 220–300 square meters (2,400–3,200 square feet) for a typical detached singlefamily home (median 60 percent less fl oor area). Furthermore, green, energy-effi cient building standards are proposed for the sustainable neighborhood that will result in lower operating costs and lower repair and replacement costs (because these are more durable homes).

It has been estimated that the median price of a minilot duplex is lower than the price of a standard single-family lot in the following order of magnitude: 1. Land price: this is approximately 25 percent below a single-family lot because of the smaller land area and lower servicing costs.

2. Home price: this is approximately 35 percent below a single-family lot because of the smaller home size and the economies of duplex construction. This also accounts for the slightly higher cost of higher-quality energy-effi cient construction.

3. Operating cost: for a minilot duplex home may, this be about 50 percent less than the corresponding cost of a single-family home because of energy effi ciency, water savings, more durable construction, and the reduced yard area to maintain.

In today’s world of economic uncertainties and unstable costs for energy and services, one may confi dently say that the more compact, more energy-effi cient, and more durable home is likely to retain its value much better than the large, ineffi cient homes of the past.

LCC is especially eff ective in helping the municipality cope with future costs Every established city today is facing trouble managing the replacement costs of declining infrastructure. Some are in a more serious situation than others because of low revenues in a declining economy and deferred replacements that are long overdue. At the same time,