Bridging the Diffusion of Innovation Chasm for Green Housing

Limited transaction and unit attribute information curtail the diffusion potential of green homes and create significant valuation and underwriting problems for the housing debt capital markets, more specifically mortgage originators (lenders) and appraisers. Put into the context of the technology adoption life cycle this missing information prevents green homes from crossing the chasm into the mainstream market. As lenders and appraisers are the gatekeepers of the mainstream mortgage markets, they will be key stakeholders in any strategy for green homes to cross this chasm. The missing transaction and attribute data creates two opportunities for scholarship. The first opportunity is to create and provide preliminary evidence of the chasm in the green housing market place. The second opportunity is to analyze, in the context of this chasm, what information and tools appraisers are using, at present, to estimate the value of high performance homes.