Recently I spoke with Glenn Harley, a passive home builder and consultant in New Zealand. With 20 years of diverse experience in the building industry including a tenure on the Board for the Passive House Institute of New Zealand, Mr. Harley breaks down the key differences between the sustainable housing market in the U.S. and New Zealand. He speaks to the fulfillment to be found in having a positive impact on your community, innovation being the key to affordability in the passive house industry, and the importance of balancing work and home life for long term entrepreneurial success. Mr. Harley’s work serves as an inspiring example of how determination and forward-thinking can create lasting positive change.
The Interview
Early Beginnings and Passion for Innovation
Griffin Connolly: Mr. Harley, you have a strong background in home building and the passive housing industry in New Zealand. Can you tell me a little about yourself, your background, and your business?
Glenn Harley: Sure, Griffin. Many years ago, I started with a carpentry apprenticeship in Christchurch, New Zealand. I was always interested in architecture from a non-traditional perspective. The challenge of dynamic work was something I enjoyed and the idea of working in this energetic field appealed to me. I completed my apprenticeship with an architectural builder in Christchurch, where I learned a lot, including what not to do during New Zealand’s leaky homes crisis. The crisis highlighted the importance of building science and attention to detail.
In 2006, I started my own company. Initially, it was about making ends meet with various jobs and gradually growing the business. I always had an interest in natural building methods like straw bale and earth bricks. This passion for innovation and better building systems served us well, as it attracted customers looking for unique and high-quality construction solutions.
The Move to Passive Housing
Griffin Connolly: That’s fascinating. How did you transition into passive housing?
Glenn Harley: Around 2014, we were asked to build our first passive house, which was the first Certified Passive House in Christchurch and about the fourth in New Zealand. It was nerve-wracking, but we had good support from product suppliers. Since then, we’ve built three more Certified Projects. A few years ago, we built a high-spec passive house on a hill to showcase our capabilities, which generated a lot of interest.
In the midst of this, around 2015, my interest in building systems led me to attend the Green Build Conference in DC, where I learned a lot about green building from the builders themselves. This experience was enlightening and reinforced my belief in the value of high-performance buildings. It was great to see the level of interest in the U.S. for green building, especially being from little New Zealand. While I was there, I visited Habitat for Humanity, who were doing the first passive project in that area. It was great to see passionate people doing great things on a budget.
We eventually moved to Nelson, and I transitioned to consultancy, working for a charity last year to build a high-performance house. I also served on the Passive House Institute New Zealand board, which is part of the Passive House Institute International. PHINZ is trying to get create housing outcomes for people in New Zealand, as well as schools and hospitals and other similar buildings. There’s a lot of dynamic and interesting people involved in that organization.
Now, I’m looking into doing something similar to what Kyle Hanson is doing with Timber Age, but with a new system, although timing is crucial.
Challenges and Rewards of Sustainable Building
Griffin Connolly: Kyle also mentioned the timing piece as being important in his journey. You’ve mentioned the personal creativity and joy you get from passive housing. Can you speak more about the external factors and motivations for getting into this industry?
Glenn Harley: That’s an excellent question because external motivations are crucial. They drive you to get up and do the work, especially when it’s tough and lonely. For me, it was an evolution. The drive to create better housing solutions is a significant motivation. The building industry was quite sick when we started, and we wanted to be part of the solution. Energy efficiency through more insulation, better systems, and innovative approaches were necessary. I became particularly interested in the modeling side of things, partnering with passive house consultants who use computer systems and spreadsheets to ensure our designs were efficient and sustainable. Working with certified passive house products is important because it’s a quality stamp; otherwise, claims can be dubious.
The challenge is balancing affordability with high performance. The affordability question is still a major hurdle, especially with material shortages and market fluctuations. Passive houses are a proven system, especially in Europe, but in New Zealand, affordability hasn’t been fully addressed. COVID and material shortages created supply issues and opportunities for greed. Ultimately, I believe governmental support is needed, driven by private business initiatives. It’s about making common sense decisions and balancing affordability with innovation.
The environmental benefits and the value to clients make it all worthwhile. It’s about doing the right thing and creating something meaningful for future generations. Although building isn’t a silver bullet for all environmental issues, it can make a positive impact. It’s about creating less environmental impact and providing more value. This aligns with the concept of right livelihood—doing something that feeds you in many ways, not just financially.
The Impact of Market Forces
Griffin Connolly: Kyle Hanson talks a lot about this too – balancing long term positive change with affordability and the cost barrier. Can you give us some insight into the market share of passive housing in New Zealand and the major struggles you face, especially being in a much smaller country, and trying to create that long lasting positive change?
Glenn Harley: Yeah, it’s the perfect question really, because people will often suggest that things in this space are really getting going in New Zealand because they’re surrounded by people who think the same way they do. It’s the algorithm of social interaction – you’re always getting the same feedback.
In reality, passive housing is still a small part of the market in New Zealand. There are around 300 passive houses, predominantly single-family homes, with very few multi-unit or commercial buildings. The market is tiny, but there’s growing interest and awareness. The few commercial buildings we have generate a lot of positive press because when people experience them, they really rave about them.
The main struggles are material availability and market competitiveness. Initially, we had to import triple-glazed windows from Germany, which was costly and time-consuming. Now there’s more local availability. Still, prices tend to rise and plateau rather than decrease, due to monopolies in the market. We don’t have the volume that you do in the U.S. to make buying products like windows off the shelf in a store like Home Depot an option.
Affordability is another significant challenge. Innovation is the key, but it must fit the market, it can’t just fit you. For instance, there was a development here without garages because that’s the norm in Europe, but it was a miss in New Zealand where people expect garages. Understanding and meeting client and market demands while innovating is crucial. But doing it in a way that fits the direction you’re going in. Fitting those two things together is the solution and the challenge.
There’s also a need for a shift in consciousness around building practices. High-performance building faces early challenges, but innovation can eventually drive costs down.
Griffin Connolly: That’s a great point about innovation and market fit. It’s interesting also, for a lot of the entrepreneurs I speak to, their biggest challenge is bringing the product to market, and then the opportunity for exponential growth exists. But you and Kyle speak to the passive housing industry being almost the opposite because it gets harder and harder with each sale because there’s less market share and interested people left to sell to.
Glenn Harley: And more people coming into the industry on the supply side because they see a good idea.
Evolution and Future Trends
Griffin Connolly: Yes, it takes a lot of dedication to the cause for sure. Can you speak to the trends you see in the passive housing space that are different from when you started?
Glenn Harley: One change has been material availability. There’s more competition now, which helps plateau costs. However, the market is still monopolized to some extent, so prices don’t fluctuate or come down as much as you would see in a larger market like the U.S.
But the main change has been innovation. People who are willing to boot-strap and give things a go. Innovation drives affordability, but it’s not just about having a good idea; it needs to be market ready. The earthquake in Christchurch about a decade ago created opportunities for rebuilding and innovation. But it was a different game with large insurers setting standards. It wasn’t necessarily conducive to high-performance building, which was still fledgling.
Covid surprisingly boosted the housing industry, contrary to my expectations. People spent more time at home, realized they needed changes, and low interest rates facilitated spending. This shift highlights the importance of being adaptable and prepared for unexpected market changes.
We need to continue innovating and pushing the boundaries of what’s possible. Collaboration and knowledge-sharing are crucial. The more we learn from each other, the better we can build homes that are not only environmentally friendly but also comfortable and cost-effective.
Advice for Student Launch Club members
Griffin Connolly: You make some really interesting points here about the interaction of timing in the market and product readiness. I have one final question for you: I run a Student Launch Club at school. If you could give us some advice as budding entrepreneurs what would it be?
Glenn Harley: It’s important to remember that it’s not just about getting what you want. It’s not just about making money. There’s a bigger picture to think of and being part of ‘business for good’.
The other thing is the importance of making time for yourself and your family. Start making that time early. Don’t get burnt out and then try and make space for it. It will be too late by then. And look after your health. Look after the engine that powers it all.
Wrapping Up
Griffin Connolly: The idea of trying to find a balance between work and family life as an entrepreneur and innovator comes up quite a bit.
It’s been really interesting to look at the differences between the two economies in New Zealand and the U.S. as they pertain to the passive housing space. It’s been great speaking with you. Thank you so much for your time.
Glenn Harley: Absolutely Griffin. Thank you, and best of luck. The passive housing industry needs innovative people thinking and talking about it.
Read my interview with Kyle Hanson from Timber Age here.