$19-38 Billion in Green Home Building Expected in 2010 Last year saw a 20% increase in the number of green home builders in the U.S., according to the results of a new survey by McGraw Hill Construction and NAHB. The study also indicates that the number is expected to grow by another 30% this year. After several years of slow but steady growth across the country, green home building — which applies innovative and environmentally sensitive construction techniques and products to reduce energy and water consumption and improve residential comfort and safety — is rapidly moving into the mainstream, according to “Residential Green Building SmartMarket Report.” The value of the residential green building market is expected to grow from $7.4 billion and 2% of housing starts last year to $19 billion-$38 billion and 5%-10% percent of residential construction activity by 2010, the new report says. “Green home building is not a fad, but a trend, and one that is increasing at rapid rates,” said Harvey Bernstein, vice president of Industry Analytics and Alliances for McGraw-Hill Construction. “The data we recently collected indicates builders will reach the tipping point by early next year, where more builders will be producing green homes compared to those who are not.” “With more builders creating green homes, and more consumers buying them, the rest of the industry will follow and increasingly begin to incorporate green features or practices into their homes and home building products,” Bernstein said. “It’s clear that more and more of our members are incorporating environmentally sensitive and resource-efficient techniques into traditional home building practices,” said NAHB President David Pressly. “It is a natural progression as home builders stay atop market trends.” To order a copy of the report, go to builderbooks.com. According to the survey results, the leading reason that builders are considering green is that “it’s the right thing to do,” Bernstein said, an indication of the industry’s strong links to the community. Of those polled, 92% identified this factor as a very or somewhat important motivation for their decision to go green. Other prominent motivating factors include: - Lowering lifecycle costs, such as energy efficiencies and productivity increases, cited by 87%
- Staying ahead of the competition or expanding business with customers who are interested in green building, 82%
- Limiting exposure to liability on such issues as water leaks and mold, 78%
Obstacles remain, the survey showed:
- Starting costs and the lack of interest by consumers to pay additional costs for a green home are perceived as a barrier by 82% and 79% of the firms surveyed, respectively
- Educating the marketplace on green building concepts was cited by 79%
- Revising codes, ordinances and regulations, 72%
Only 39% said that the perception of green building as a fad and not something here to stay was a significant roadblock.
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