Advocates of green building have long held that environmentally friendly, energy efficient construction need not be more expensive; in the long run, green building will be cost effective both for the building owner and society at large. Several national studies and leading practitioners suggest that if there is a cost premium for building green, it is very small. Yet without a study specifically addressing buildings located in dense, urban environments, many question the applicability of these findings to the New York City market.

The number of LEED projects registered each year in New York City has increased exponentially, but there is still a long way to go before LEED design becomes the construction standard. In New York City, nearly 5,000 permits for new construction projects were issued in 2007 , but only around 200 of these projects registered for LEED certification. One explanation for the comparatively slow adoption of sustainable building practices in New York City is the perception that green building is expensive, but is this perception accurate?

Urban Green Council, a leader in advancing sustainability of the urban built environment, recognized a critical research need. The Council, with funding assistance by the New York State Research and Development Authority (NYSERDA), engaged Davis Langdon to conduct a data-based study of the cost of building green in the City.  This report examines recent construction projects in New York City in order to determine whether or not sustainability adds to project costs, and, if so, how much.