Green homes comprised 17%, or $17 billion, of the overall residential construction market in 2011, according to new findings in the Green Home Builders and Remodelers Study by McGraw-Hill Construction. Mc-Graw Hill predicts green homes will gain market share over the next few years to between 29-38% of the market by 2016 — a market that could equate to $87-114 billion by these forecasts.
Additionally, 34% of remodelers expect to be doing mostly green work by 2016.
Factors that contribute to the growth of the green homes market include “higher quality” and “increases in energy costs,” while obstacles continue to be “higher perceived first costs” and “lack of consumer education.” Builders guesstimate that the premium to build green is about 7%, according to McGraw-Hill Construction.
Areas with the highest growth in green homes include, first, the West Coast, second, the Midwest northern region west of the Mississippi, and third, the New England area.
Notwithstanding a brutal housing economy, “green has grown significantly as a share of activity— indicating that the green market is becoming an important part of our overall economic landscape,” said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw-Hill Construction.
As the housing economy begins to, perhaps, come back a little from recent doldrums, 33% of builders and 22% of remodelers expect to be dedicated to green building work by 2016.
Credit: McGraw-Hill Construction.