The Billion-Dollar Mistake Hidden in America’s Buildings

0 Share Newsweek is a Trust Project member See more of our trusted coverage when you search. Prefer Newsweek on Google to see more of our trusted coverage when you search. Schools inspect cafeterias, hospitals inspect equipment, and office towers undergo rigorous fire and safety checks. Yet one of the most important factors affecting the people inside those buildings often escapes scrutiny: the air they breathe. According to the U.S. Environmental Protection Agency ( EPA ), Americans spend roughly 90 percent of their time indoors, while concentrations of some pollutants are often two to five times higher than those outdoors. Recent decades have seen an increase in pollutants in indoor air quality due to the increased use of synthetic chemicals within closed doors.

Research from the University of Birmingham in Britain links poor indoor air quality to reduced cognitive performance, lower productivity, and adverse health outcomes, with the associated economic costs estimated at between $13.2 billion and $32.1 billion annually, as reported by the EPA. Meanwhile, the International Energy Agency suggests that electricity demand is climbing as AI infrastructure and data centers place unprecedented pressure on power grids, making operational efficiency a financial concern as much as an environmental one.

These forces are reshaping the conversation around construction . High-performance buildings were once viewed largely through the lens of sustainability. Today, business executives, university trustees, healthcare leaders, and nonprofit boards are asking a more pertinent question: as utility costs continue to rise, can we achieve healthier buildings while protecting budgets?

Fresh technology is accelerating that shift. Artificial intelligence is beginning to monitor building performance in real time. The U.S. Department of Energy reports that building-integrated photovoltaics can transform entire roofs into power-generating systems. According to a study published in the Journal of Building Engineering , electrochromic glass offers thermal insulation performance, automatically adjusting to changing sunlight. Taken together, these advances are challenging the long-held assumption that better buildings inevitably cost more.

Larry Eighmy, the managing principal and founder of The Stone House Group , believes that assumption is now outdated. The Pennsylvania-based building stewardship firm has spent more than 25 years advising schools, healthcare organizations, higher education institutions, and mission-driven organizations across every stage of a building’s life cycle, from planning through long-term operations. Its philosophy has evolved alongside the technology itself.

“We’re becoming much more direct on the value proposition. You can build a better building for a lower life-cycle cost. That’s really where we’re taking our message,” Eighmy says. “COVID reminded us that smarter, high-performance buildings are better because of filtration, airflow control, and ventilation. We saw it again during the wildfire smoke events. A better building is healthier, costs less to operate, and uses less carbon.”

He argues that many organizations still approach projects too late, after fundamental decisions have already been made. The Stone House Group instead works across planning, design, construction, and operations, looking for opportunities before the first concrete is poured.

On occasion, that means recommending that no new building be constructed at all. “The best square footage is the square footage you didn’t build,” Eighmy says. “If we understand how every space is being used, renovation may create a better answer from both a carbon and financial perspective.”

Paul Barna, an associate principal and building envelope commissioning specialist who is also a Passive House-certified professional, notes that the economics often become clear during construction itself, when seemingly minor decisions can prevent years of costly problems. “A high percentage of construction litigation comes from the building enclosure,” Barna says.

“Our job is making sure compatible materials are selected, installed correctly, and issues are resolved before they become expensive failures. You’re spending hundreds of dollars per square foot constructing a building. Investing a fraction of that to protect the asset saves multiples of the fee over time.”

Technology is making those savings more attainable. Eighmy points to integrated photovoltaic roofing systems that replace conventional roofing materials while generating electricity. He also emphasizes the implementation of smart controls that continuously optimize building performance, and AI platforms capable of detecting mechanical failures before occupants notice a problem. “Convergence of new technologies in the architecture of building controls and the maturity of AI in this space exponentially expands our capabilities,” says Eighmy.

Software can sit on top of the building automation system and constantly monitor performance. “AI is helping us build better energy databases, review drawings for conflicts, and optimize buildings continuously instead of waiting until something breaks,” Barna notes.

He believes that those advances also allow owners to think differently about energy investments, particularly as electricity prices continue to rise. He explains, “Energy isn’t getting cheaper. We evaluate technologies like geo-exchange, photovoltaic roofing, and advanced envelope systems based on each client’s operating needs. We’re looking for the solution that delivers the strongest long-term value.” Barna adds that his firm pairs every technology decision with the specific credits and rebates attached to it, treating financial strategy as integral as mechanical engineering.

Eighmy hopes the message reaches further than architects and engineers. He wants trustees, school board members, nonprofit leaders, and anyone responsible for institutional assets to challenge ass...

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