How Much Does a Passive House (Passivhaus) Cost?
At Live Green Homes, one of the most common questions we hear is:
“Is building a Passive House more expensive?”
The honest answer? Yes, however, it depends on what you're comparing it to.
The comfort and air quality of a Passive House are in a league of their own. As with any premium solution, the upfront cost reflects its long-term value.
Passive Performance vs. Standard Builds
Think of it this way: choosing a Passive House over a conventional build is like opting for an electric vehicle instead of a gas-powered car. Sure, the upfront cost might be higher, but the quiet ride, lower running costs, and environmental benefits make the overall experience far superior, especially over the long haul.
The same goes for homes. Passive Houses offer superior comfort, air quality, and energy performance that standard homes simply don’t. They’re designed and built to exacting standards—and with that comes a certain cost.
They deliver unmatched indoor air quality, thermal comfort, and energy savings—365 days a year. That premium performance often comes at a higher initial cost, but the value it returns over time is substantial.
So, What’s the Real Cost?
There’s no fixed price tag for a Passive House. Just like any custom home, several factors play into your final cost. Everything from your site and climate to design details and your choice of builder.
Let’s break it down:
1. Location, Climate & Site Conditions
Where you build has a major impact on both design and cost. Climate zones influence insulation requirements, glazing choices, and passive solar strategies. Site conditions—like whether your block is flat, sloped, sandy, or rocky—can affect earthworks, drainage, and structural design.
At Live Green Homes, we’ve built homes across a variety of landscapes, from coastal lots on the Surf Coast to sloping sites throughout Geelong and the Bellarine. Each home is tailored to its environment.
2. House Design, Size & Layout
The size and complexity of your home are major cost drivers. Larger homes naturally require more materials and labour. However, smart design can reduce thermal loss, simplify the building envelope, and enhance efficiency, regardless of size.
Key design considerations include:
Heat loss form factor – How the home’s shape affects thermal efficiency.
Glazing ratio & orientation – Balancing daylight with heat retention.
Material selection – Choosing products that boost performance without unnecessary cost.
3. Fitout, Finishes & Interior Choices
Your aesthetic preferences—cabinetry, fixtures, flooring—can significantly impact cost, but it’s important to note: these aren’t what make a home Passive.
4. Construction Methods & Energy Efficiency Features
Passive Houses must meet exacting performance standards. That requires more precision during construction, especially regarding insulation, airtightness, and ventilation.
The five essential elements of Passive House performance include:
High levels of continuous insulation
Airtight building envelope
High-performance windows and doors
Mechanical Ventilation with Heat Recovery (MHRV)
Thermal bridge-free detailing
These components require skilled trades and attention to detail, which can impact upfront costs, but they also deliver lasting comfort and dramatically lower running costs.
5. Choosing the Right Builder
A Passive House isn’t just about materials—it’s about how it’s built. Choosing a builder with real Passive House experience is crucial.
At Live Green Homes, we’re certified Passive House (Passivhaus) builders. We’ve delivered Passive House and high-performance homes across the region, and we work with you from concept to completion to ensure your home is both beautifully crafted and built for long-term performance.
What’s the “Passive Premium”?
There’s often talk of a 20% increase in cost over conventional builds. But again, it depends on what you’re comparing it to. If you're measuring against a mass-produced home with minimal specs, yes, Passive may cost more.
But when compared to a well-built, high-performance custom home, the difference can be surprisingly small.
Ready to Explore What’s Possible?
The team at Live Green Homes have built Passivhaus and High Performance Homes across Geelong, the Surf Coast, and the Bellarine. We understand local site conditions, council requirements, and how to design a home that works with your land and your lifestyle.
Call us today or visit our Bentley 32 Display Home in Leopold to chat with our New Homes Specialist, Richard. We’d love to help you bring your vision to life.
Richard Barton, New Homes Specialist (03) 9111 3280
The Bentley 32 Display Home
44 Opal Drive, Leopold, VIC
Opening hours:
Monday & Friday 12 pm – 5 pm
Saturday & Sunday 11 am – 5 pm
Tuesday to Thursday by appointment only