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Published on June 1st, 2012 | by Silvio Marcacci


Green Home Building Booming, Could Be $114 Billion Market By 2016

June 1st, 2012 by  

The confluence of a stagnant housing market and consumer desire to save money is creating a green home building boom that could be worth up to $114 billion by 2016, according to a new report from McGraw Hill Construction.

Green homes represented $17 billion, or 17 percent of the overall construction market in 2011. This figure is double 2008’s 8-percent market share (valued at $10 billion) and has been a “bright spot in an otherwise dismal market.” But green building’s market share is expected to sharply rise to 29-38 percent across a five-year forecast for overall residential construction – potentially an $87-114 billion opportunity.

416 National Association of Home Builders builder and remodeler member companies were surveyed in Q4 2011 on their green building practices to compile the report, “New and Remodeled Green Homes: Transforming the Residential Marketplace,” which focused on single-family home building and remodeling.

According to the report, the two key factors driving market growth are the facts that green homes are seen as higher quality, and that they save consumers money on utility bills. “Home that are not only green, but also offer the combination of higher quality and better value have a major competitive edge over traditional homes,” said Harvey Bernstein, vice president of industry insights and alliances at McGraw-Hill.

The report shows that green building projects are largely value-driven for consumers. Two-thirds of builders and remodelers say consumer request green projects to lower energy use and save money, 80 percent say energy efficiency measures are “pervasive” in the market, and more than half consider durable materials one of the most important features in homes today.

Greater environmental value brings greater monetary value for buyers, according to McGraw-Hill. 46 percent of builders with more than $1 million in revenue said green building features make it easier to market homes, and 61 percent of builders/66 percent of remodelers report home buyers are willing to pay more for green homes.

Homebuilders are taking note of the trend. One-third of all builders say they will be dedicated to green building by 2015, meaning more than 90 percent of their projects will be built using green standards. This focus is returning dividends – 77 percent of firms dedicated to green building say it helps their bottom line.

Interestingly, this green building boom is happening even though most builders and remodelers report increased costs for green measures. Builders report a seven-percent cost increase, and remodelers report an eight-percent cost increase. However, dedicated green builders reported only a five-percent increase, suggesting experience with green building techniques reduces project costs.

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About the Author

Silvio is Principal at Marcacci Communications, a full-service clean energy and climate policy public relations company based in Oakland, CA.

  • G.N.

    We all recognize how important it is to start building (and living) green but when it comes down to it, actions are not backing up our words. As someone who is attempting to purchase an ‘eco home’, a home with a tiny carbon footprint and built green, I am finding that it is nigh impossible to find funding or financing for it and even non-traditional lenders are finding or making excuses not to approve our loan request. Where is our real commitment?

    I would love to walk my talk and live in a way that is sustainable, but I just can’t seem to make the pieces fit. If anyone has any suggestions I would love to hear them. I am not giving up, by any means!

    • Unfortunately, I’ve been aware of this problem (for certain types of building) for over a decade, and I know of no clear solution. Some very progressive lenders will fund such projects, but they are very few and far between (location based) from what I understand.

  • green expert

    the nahb has hurt america the green expert told the nahb research center in 2000 12 yrs ago and had the info to back up his statements green building was the future. nahb dragged their feet their members built 6 million homes that all fell in value. leed, energystar, earthcraft,passivehause and many others stepped in to fill the void and the negligence that the nahggreen reaserch center specifically richard dooley failed at their job.
    now here we are 7 yrs later and the world has now realized that the green expert was correct over a decade ago.
    not to mention the nahb lobbied congress for tax benfits for a failing industry..this is why america is a flat out failue and lost world presence under the bush regime. Look for leadership from dubai and china. and in the future the green expert will document exactly how much the bush regime cost america…..
    oh and buy the way for all you idiot nahb members nahb green is a failed label so start getting used to it as it can now be documented to your dismay.. I told you all so more than a decade ago….

  • michaelzsecrist

    You will probably never see such a golden opportunity to refinance your mortgage loan in your lifetime, it is great time to check your rates are 123 Refinance check it for yourself

    • 7and7

      Apparently you moderate better than the Plattsburgh Press Republican. They let this spam ad through.

      • Thanks to our anonymous, diligent moderator for that one. 😀

  • richardzplatt

    If you have a local grocery store that doubles coupons, you can get some really great deals check out websites like Coupons or the Printapons websites

  • Green design

    up to 40% energy bill can be saved by applying energy efficient meaures, these include not only better insulations, proper orientation of the building with respect to solar path, passive heating and cooling, energy efficient electro mechanical fixtures and equipment, payback for additional upfront cost is not more than four years,
    for further readings, see http://www.thegreenbuildinghvac.com

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