Adrienne and Trey Farmer are getting used to a certain look of surprise when visitors walk in their front door. The couple’s 1914 Craftsman bungalow is perched on a side street above a busy Austin freeway, so guests expect something dim and noisy. What they get is totally different: a light-filled, serene, contemporary interior with dramatic views of downtown. It’s like biting into what you think is an old-fashioned doughnut and discovering lemon cream—except that this surprise is also really, really healthy.

The Theresa Passive House, as the project is known, is a case study for resilient, health-conscious design techniques. Trey, an architect at Forge Craft Architecture and Design, and Adrienne, owner of interior design office Studio Ferme, collaborated with architect Hugh Jefferson Randolph to transform a worn, leaky, and loud 100-year-old house into a resilient haven.

$22,000 Demolition & Salvage	$61,000 Foundation, Retaining Walls & Masonry	$110,000 Framing and Steel
$31,000 Windows	$9,000 Waterproofing & Termite Protection	$20,000 Roofing & Gutters
$26,000 Electrical	$40,000 Plumbing	$30,000 Insulation
$24,000 HVAC	$63,000 Siding & Deck	$21,000 Appliances
$26,000 Interior Trim & Finishes	$15,000 Countertops	$31,000 Wood Floors
$24,000 Drywall	$53,000 Paint	$54,500 Millwork
$10,000 Closets	$23,500 Plumbing Fixtures	$16,000 Tile
$15,000 Screen Porch	$75,000 Landscape & Irrigation	$36,000 Photovoltaics & battery
Grand Total: $836,000

The goal, say the Farmers, was to show the local community that hitting aggressive targets in efficiency and health are attainable on a realistic budget (no, really: $420 per square foot in 2019/2020, when the project was built, was about mid-range for high-quality residential construction in Austin. It’s higher now). The house is entirely electric, powered by solar panels and a backup battery, and the HVAC system includes a VRF heat pump, a dedicated dehumidifier, and a separate energy recovery ventilation system. But performance wasn’t the only goal. “We wanted it to be delightful,” says Adrienne.

By moving the insulation to the roof plane, the designers allowed for dramatic plays of light and volume. Natural materials including long-leaf pine salvaged from the original floors, natural plaster, tile, and textiles add warmth and comfort and are easy to clean and maintain (even with a precocious four-year-old and a Great Pyrenees mix).

Overall, says Trey, incorporating Passive House strategies—including a robust thermal envelope (insulation, air sealing, and windows), high-performance mechanical systems, and energy-efficient appliances—added 2-3% to the budget. But, he says, the benefits—a quiet house, fresh air, low utility bills—far outweigh the costs. “We used to be able to hear the expansion joints on the bridge,” he says.

And enjoying those benefits does not necessarily require a full-house remodel: The Inflation Reduction Act offers tax incentives for switching to energy-efficient heat pump units, and many cities, including Austin, offer low- or no-cost loans for homeowners to add insulation and weatherstripping. Trey’s firm now only designs to Passive House standards for their custom residential work, and incorporates Passive House strategies into their supportive housing projects. As Trey says, “Why would you do anything else?”

More Budget Breakdown stories:

An Architect Tinkers With Passive House Design on Long Island for $705K

A Dilapidated Desert House Springs Back to Life for $165K

A Couple Build a Cabin in the Blue Ridge Mountains for $150K—Without Borrowing a Cent

Project Credits:

Architect of Record: Trey Farmer, Forge Craft Architecture + Design / @forgexcraft

Collaborating Architect: Hugh Jefferson Randolph Architects / @hughjeffersonrandolpharchitect

Builder/General Contractor: Blake Smith, Level on the Level

Structural Engineer: Lester Germanio Engineers

Landscape Design: Austin Outdoor Design

Interior Design: Adrienne Farmer, Studio Ferme / @studioferme

Cabinetry Design: Lavish for Home

Mechanical Design: Positive Energy

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Budget Breakdown: An Austin Couple Give a Century-Old Craftsman a Passive House Upgrade for $836K