A new McGraw-Hill Construction SmartMarket Report reveals that the market for green homes is booming – and shows no sign of slowing down either. The report entitled “New and Remodeled Green Homes: Transforming the Residential Market” suggests that the market for green homes will grow around 29 – 38 percent by 2016. Such growth could increase the market’s business by $114 billion.
Already the green building market has seen considerable success over the past few years. In 2008, the green building market constituted only 8 percent of the overall construction market and was valued at $10 billion. But in 2011, green homes constituted 17 percent of market, representing $17 billion in business.
If these growth trends continue (and McGraw-Hill Construction projects they will), then the green home market could provide a huge boost to an otherwise dismal construction market.
In compiling their report, McGraw-Hill Construction surveyed 416 National Association of Home Builders builder and remodeler companies across the country on their building practices. They determined that the green home market is being driven by two main forces: (1) the perception that green buildings are of higher quality and (2) the perception that they provide a higher value (through long-term cost savings).
Builders and remodelers seem to realize that differentiation is crucial in today’s economic climate. Homeowners are looking for homes that are durable and energy efficient. And environmental values aside, consumers are looking for homes that will save them money down the road through less energy consumption.
In fact, 66 percent of home builders and remodelers reported that consumers requested green homes to lower energy usage and save money.
The latest trends have not gone unnoticed by most home builders. One third of all builders say they will be dedicating their efforts to green building over the next three years. Three quarters of all builders say that focusing on green buildings has helped their bottom line.
Even Home Depot has recognized the burgeoning green construction market and launched its new LEED product finder.
Do you think the green home market will continue to grow substantially over the next 5 – 10 years?
Image CC licensed by yellow book: Eco-housing