In an effort to stand out and offer a unique product not currently available in today’s glutted real estate market, Martha Stewart and KB Home are teaming up to unveil a new line of “environmentally friendly” homes that boast solar panels, kitchen composting bins and a rainwater collection system[1]. Add-ons include electric-car charging stations. The team hopes that Martha Stewart, who has been involved with KB Home in the past and whose branded homes outsold similar, non-branded ones by the company in 2005, will once again boost home sales while helping the company take advantage of one of the few niches in the housing market that is not already filled to bursting with REO properties and low-priced foreclosures: the green market.

However, the success of the line will probably ultimately hinge on the economics of the homes. Thus far, reports the Wall Street Journal, “industry watchers are skeptical” that Martha Stewart’s name alone will be enough to get home buyers to “buy green.” Other builders say that green features are “difficult to understand” and cite difficulties showing value as a reason that they have not entered the green market more aggressively. One builder, CEO of a Texas-based building company, says that as soon as he sees that there is a market for green homes, he’ll be there, but right now “we’re not losing customers because other builders offer green options.”

As long as it’s easier to see the value of a granite counter top than the value of a solar panel, buyers may opt for the countertop. But KB is prepared for that also, with more conventional, Martha Stewart-branded offerings that are still designer, just not quite as “green.”

Do you think that green building is the next thing for new construction?

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[1] http://online.wsj.com/article/SB10001424052748704515904576076293538012796.html