Hand drawing a diagram of people, planet, profit on a chalkboard to explain the intersection of Sustainable Development concept

The Sustainable Housing Challenge: How to Achieve Energy Efficiency and Affordability

Shawna HendersonMay 06, 2025

In a recent conversation between Shawna Henderson and Peter Amerongen, president of Retrofit Canada, some key insights emerged about the state of deep retrofits, building science, and the future of sustainable housing in Canada (you can listen to the whole conversation on This Must Be The Place: The Building Science Podcast).

Sustainable Housing: Technical Focus and Scope

Like Blue House Energy, Retrofit Canada’s work primarily focuses on Part 9 buildings (small buildings and residential structures). This specialization allows them to develop deep expertise in residential sustainability solutions, aiming to provide effective solutions through best practices in the building and construction industry. Check out the growing list of Retrofit Canada case studies here, it’s a mix of finished projects, feasibility studies, and a few non-residential buildings as well.

There is a pressing need to build exponentially more homes to address the global housing crisis. Sustainable housing is how we ultimately create affordable housing in the long term by reducing energy consumption, conserving water, minimizing waste, and creating healthier living environments for occupants. New construction and retrofit projects can use both traditional and innovative materials and methods to ensure long-term sustainability. It's not rocket science - it's building science, and we've got the technical part of things sorted.

Making it affordable is another question, and that's got to include how we value the total cost of building ownership, not just up-front capital costs.

While initial construction or retrofit costs may be higher than 'business as usual' projects, the financial aspects of building and maintaining homes are critical to include in the value calculation. More durable and resilient materials choices combined with reduced energy and water costs end up playing a significant role in affordability over the lifespan of the building.

An image of a Venn diagram superimposed over a person who looks like they are using a marker to complete the diagram. The Venn diagram has the words 'Social, Environment, and Economics as the three outer circles. Where social and Environment overlap, is the word Bearable. Where the words Social and Economics overlap is the word Equitable. Where the words Economics and Environment overlap is the word Viable. In the centre of the diagram is the word Sustainable.

The three pillars of sustainability are environment, social, and economic. The key principles of sustainable housing include conservation of energy, water, and resources in ways that address the three pillars, for example:

  • Eco-friendly practices and technologies that minimize environmental impact and promote healthy living environments are also critical.
  • Reducing health care demand by improving indoor air quality and reducing occupants’ exposure to harmful substances.
  • Various approaches to sustainable houses, including multi-unit buildings (densification), prefabricated homes, and tiny homes offer unique features and advantages, including energy efficiency and lower construction costs.

Housing infrastructure can either worsen existing issues or serve as a pivotal solution to the global housing crisis. Since the late 1980s, sustainable projects, policies, and plans have been implemented across different regions of the world, showcasing the potential of sustainable housing solutions.

Various strategies in the design and construction of sustainable housing, such as passive design strategies and community engagement approaches, contribute to overall sustainability. Prefabricated homes are less exposed to adverse weather conditions during the brief assembly process, enhancing their durability.

The global scale of challenges and solutions related to sustainable and affordable housing highlights the interconnectedness of housing issues with climate change and the need for innovative approaches worldwide.

A graphic showing connections between several different icons representing environmental, economic, and social impacts of sustainability.

Introduction to Sustainable Housing

Sustainable housing refers to the design, construction, and operation of living spaces that minimize negative environmental impact and promote social equity. Sustainable housing aims to reduce energy consumption, conserve water, and minimize waste, creating healthier living environments for occupants.

Sustainable housing not only benefits the environment but also provides long-term cost savings and improves the overall quality of life for residents.

Sustainable housing strategies include energy conservation in the building envelope, energy efficiency in the mechanical systems and appliances, and reducing waste through renewable, reusable, or repurposed materials. These strategies can be achieved through the adoption of existing technologies and sustainable practices. For instance, incorporating energy-efficient systems like solar panels in a Net Zero Energy house or retrofit can significantly reduce reliance on fossil fuels and lower utility bills.

An elevation drawing of a house showing PV (solar electric) panels on the roof

Key Principles of Sustainable Housing

Energy efficiency is a cornerstone of sustainable housing, achievable through the use of energy-efficient appliances, insulation, and building materials. This not only reduces energy consumption but also lowers utility bills, making homes more affordable to maintain.

Sustainable housing also emphasizes the use of renewable materials, such as recycled content, and aims to reduce waste during both construction and operation phases. Water conservation is another critical principle, which can be achieved through careful plumbing system design, low-flow fixtures and rainwater harvesting systems.

Social equity is a fundamental aspect of sustainable housing, ensuring that affordable housing options are accessible to all, regardless of income or social status. By prioritizing social equity, sustainable housing projects can help bridge the gap between different socioeconomic groups.

Governments and organizations play a key role in promoting sustainable housing by providing incentives like tax credits and subsidies for homeowners and businesses that adopt sustainable practices. By reducing reliance on non-renewable resources and lowering our carbon footprint, sustainable housing creates healthier living environments for current and future generations.

Exterior wall insulation using mineral wool, building under construction.

The Hunt for Energy Efficiency in Deep Retrofit Projects

Back to Retrofit Canada: Peter and his team are actively searching for more deep retrofit opportunities. This initiative involves collaboration with Tim Wilson, the executive director of Retrofit Canada, and other industry professionals to identify and pursue promising leads for sustainable building upgrades.

Currently, the database includes a variety of case studies showcasing successful deep retrofit projects across Canada, including residential, commercial, and institutional buildings. The core focus is on deep energy retrofits, which involve comprehensive upgrades to improve a building's energy performance, often with a focus on achieving net-zero readiness.

The case studies cover diverse topics like site-built, panelized, and deep energy retrofits, and some also address embodied carbon, climate adaptation, and energy poverty.

The residential case studies include single-family homes, heritage cottages, and multi-unit buildings. Commercial and institutional case studies include municipal buildings, schools, and universities, often focusing on energy performance contracts and facility renewals.

Does your project demonstrate any of the following topics?

  • Panelized and Site-Built Retrofits: Retrofit Canada includes case studies comparing site-built and panelized retrofit approaches, showcasing the benefits of both.
  • Embodied Carbon: Some case studies consider the embodied carbon of materials used in retrofits, aiming for sustainable and low-carbon solutions.
  • Climate Adaptation: Some case studies address climate resilience, with retrofits designed to withstand changing climate conditions.
  • Energy Poverty: Some case studies focus on addressing energy poverty by making homes more affordable and energy-efficient.
  • Smart Buildings: Natural Resources Canada includes case studies on data-driven smart buildings and their role in optimizing energy performance.

If you’d like to talk to Retrofit Canada about including your project as a case study, use this link.

Building Science Insights: Windows and Comfort

When asked about his favorite aspect of building science, Peter highlighted the importance of mean radiant comfort, particularly regarding window performance. He emphasized that various factors, such as energy efficiency, water conservation, renewable materials, and overall environmental impact, are essential for designing and constructing sustainable housing.

But windows have always been - and remain - the weak link in the building envelope.

He expressed concern that much of the window industry might be missing opportunities to improve building comfort through high-performance windows and air tightness - two crucial elements for creating comfortable, energy-efficient homes.

Additionally, the use of energy-efficient materials, passive design strategies, and community engagement approaches collectively contribute to the overall sustainability of housing initiatives.

Personal Experience with Home Upgrades

Peter shared his own experience with home improvements, describing his current project to achieve net-zero status through geothermal systems and solar installations, and how his sustainable home is being built with innovative materials and practices.

The financial aspects of building and maintaining homes are crucial, especially when considering the low construction costs of straw bale homes and the impact of energy and water costs on the financial sustainability of affordable housing.

His property, located near the Riverdale Net Zero House and Sundance Housing Co-op, is a good example of some of the practical challenges of upgrading existing homes, including working with older window systems that may not benefit from replacement despite newer technologies being available.

Industry Challenges and Opportunities

Among the biggest industry challenges is the tendency to implement single measures without considering the bigger picture, aiming to provide effective solutions through best practices in the building and construction industry. This approach often results in missed opportunities for comprehensive, effective improvements for the sake of ‘low hanging fruit’.

The use of energy-efficient materials, passive design strategies, and community engagement approaches collectively contribute to the overall sustainability of housing initiatives.

Peter emphasized the importance of thorough planning and system-wide thinking in retrofit projects, considering various factors essential for designing and constructing sustainable housing.

The Retrofit Canada Conference: A Platform for Innovation

The discussion touched on the upcoming Retrofit Canada Conference (June 9th and 10th in Toronto).

This event, while not organized by Retrofit Canada itself, promises to explore the intersection of policy, finance, and technology in transforming Canada’s retrofit sector, considering various factors essential for designing and constructing sustainable housing. There are two streams: residential retrofits and commercial/large-scale projects.

Documenting Deep Retrofits: A Collaborative Effort

The conversation began and ended with a discussion about the documentation of deep retrofits. Peter explained that while they aim to make the process as self-directed as possible, some formatting and follow-up work is still necessary. This documentation effort represents a crucial step in advancing sustainable building practices, even if it requires additional resources and support.

By creating ‘recipes’ for retrofit packages, the learning curve goes down and the number of successful whole house energy retrofits goes up.

Community Engagement and Participation

Community engagement and participation are vital for the successful implementation of sustainable housing projects. By involving residents in the planning and execution stages, we can ensure that their needs and concerns are addressed, leading to more effective and accepted solutions.

Education and awareness campaigns are crucial for raising awareness about the benefits of sustainable housing. Workshops, training sessions, and public meetings can provide platforms for residents to learn about sustainable practices and contribute their input on projects.

By addressing potential barriers, such as lack of access to affordable housing options or limited awareness about sustainable practices, community engagement can help ensure that sustainable housing projects are inclusive and effective.

Assembly of modules in a prefabricated house factory, production of structural elements ready for transport to the construction site

Looking Forward

As the home energy retrofit industry evolves, the key is developing comprehensive, replicable solutions that consider both technical requirements and practical implementation. We need a balanced approach, aiming to create comfortable, energy-efficient homes for Canadians through best practices in the building and construction industry.

Peter and the Retrofit Canada are a significant part of the ongoing efforts to improve Canada’s housing stock, considering various factors essential for designing and constructing sustainable housing. 

What deep energy retrofit projects are you working on? Share links in the comments, we'll showcase your project here too!

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