Green building is forecast to lead the construction market

New SmartMarket Report estimate that the green homes share of the construction market was 17% in 2011, equating to $17 billion, and expected to rise 29%-38% by 2016, potentially a $114 billion opportunity, based on the five-year forecast for overall residential construction.

Energy efficiency efforts become commonplace in new construction and remodeling projects, while remodelers place high value on waste management and sustainable materials.

Factors driving the growth in the green home building and remodeling market include:
  • Higher quality for both new home builders and remodelers. For those doing a high volume of green homes (at least 60% of the homes they build), its importance is magnified, with 90% who regard higher quality as an important trigger for building green, compared to 72% of builders overall.
  • Customers are strongly value-driven—around two-thirds of builders and remodeler respondents state that customers request green homes or remodeling projects in order to lower their energy use or save money, more than twice any other factor.
  • Higher first costs for building green are noted by a much lower percentage of builders as an obstacle now than they were reported in 2008.
The study also reveals the key practices and technologies taking over in the residential marketplace as a result of the shift toward green:
  • More than 80% report that energy efficiency is making today’s homes greener compared to two years ago. Use of energy-efficient features is pervasive in the market—the top practice by nearly all surveyed builders and remodelers, regardless of their level of green building activity.
  • Indoor air quality is growing in importance and focus for home builders. 60% of home builders believe that efforts to improve indoor air quality make homes greener than they were two years ago, and 95% of high volume home builders report including features that impact air quality.
  • More than half consider durable materials one of the most important features in their homes today. In particular, remodelers emphasize this key aspect of their projects. Durability and better materials are key reasons why green homes and remodeling projects are considered of higher quality.
Builders and remodelers are placing more emphasis on energy efficiency, increases in sustainability focused waste management practices and more products made from post-consumer materials. These important factors are pushing our industry forward.

New SmartMarket Report produced by McGraw-Hill Construction in conjunction with the NAHB and Waste Management. Get a copy of the report.

Mary Love is the Director of Green Division
and you can each her at 828-279-6723
www.lovethegreen.org