Green Construction Starts Could Reach $140 Billion by 2013


Over the last month, I’ve seen several reports on green building, and we’ll try to address them all in due time.  With reports like this, though, we have to spread it out – this is geeky stuff, it’s not leisurely eye candy or anything like that.  But we like to follow the numbers in anticipation of future trends.  In that regard, the Green Outlook 2009: Trends Driving Change report by McGraw-Hill Construction has some interesting information.  According to the report, the value of green building construction starts was up five times from 2005 to 2008, with values escalating from $10 billion to $36-$49 billion.  Also, by analysis, the report estimates that construction starts could triple over the next five years and reach $96-$140 billion.

The report’s findings are based on the Dodge database, construction industry surveys, data analysis, and analysis of other indicators such as LEED certification and government regulation. 

You might be skeptical of information such as this because, after all, the economy is a little different today that it was, say, 6-9 months ago.  That said, it appears that McGraw-Hill Construction built tough economic conditions into the report, and as a matter of fact, green is doing good in the down market.  Perceived economic benefits are driving green building and some of those benefits include:

  • Higher revenues
  • Lower lifecycle costs
  • Lower operating costs
  • Other motivations: health costs, governmental regulations, global competition

Harvey M. Bernstein, VP of Industry Analytics, Alliances and Strategic Initiatives for McGraw-Hill Construction, said, “The business opportunity afforded by green building, even in the midst of a global economic crisis, are real and recognized by industry players.  Furthermore, green building has great potential to help tack unemployment through green jobs, and can address other societal issues, such as creating healthier places where we live and work.” 

[+] Order the Green Outlook 2009 Report – $249
[+] Read more: Green Building Could Triple [MarketWatch]
[+] Green Buildings Financial Outperform Non-Green

Article tags:
  • green

    now heres a leader talking with dubai,china, and korea building entire green cities,leed being 9 yrs old,the incoming legitimately elected president obama statg requardless of the bush debt obama will spend 150 billion 15 billion over the next ten years, and a federal mandate to build all federal buildgs green,
    a video clip sent to climate summit staitng all carbon emissions will be cut by 30%
    in the next 10 yrs,appraisers underwriting green guidelines,jetson green and mcgraw hill see a trend?this is just one of the many reasons the us is not a world leader.any idiot 10 yrs ago could have looked at the trizac scale and understood that the cost of energy would increase.which in turn would lead to energy efficiant home building.this clearly indicates what a failed media company reports.
    now with obama as prez the usa will gain world prominace and implemengt all the national green building,marketing and standards that were not recognized by the republicans bush and the republican congress. in addition the green industry will support itself and the top 2% of income earners in the nation will pay 5 trillion dollars for the bush failed war.the time has come probably in 2011 all bush tax cuts will revert back to 20%

  • dubois

    The 3 new MHC reports are insightful and encouraging. They show how owner expectations are rising, sometimes ahead of real performance.

    It’s also interesting that productivity doesn’t rank among the top paybacks. A tiny increase in productivity outweighs the most impressive drop in operating cost, because payroll expense is so many times larger than energy cost in an office building.

    Here’s an interview I did with Harvey Bernstein of MHC, and within that article is a link to another from a Greenbuild session on the business case for green buildings, where productivity gains were quantified.

    Greenbuild 2008: Green Outlook for Sustainable Buildings in 2009

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