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.
[+] More about the Green Home Builders and Remodelers Study.
Credit: McGraw-Hill Construction.
I really believe that green building is the future.
Let’s hope so for all our sakes! There are a lot of benefits for the individual homeowner too, to use energy-efficient windows, insulation and other building supplies.
[…] A study by McGraw-Hill Construction indicates that green homes will drive the housing recovery. In 2011, green homes made up 17 percent, or 17 billion dollars, of the total residential construction market. That market share is expected to balloon to 33 percent, or 300 billion dollars, by 2016. That’s quite a lot of money, and big builders have taken note. National brands are very good at making lots of homes very quickly, cheaply, and effectively. But the question is: can they make good green homes applying the same techniques? […]
[…] A study by McGraw-Hill Construction indicates that green homes will drive the housing recovery. In 2011, green homes made up 17 percent, or $17 billion dollars, of the total residential construction market. That market share is expected to balloon to 33 percent, or $300 billion dollars, by 2016. That’s quite a lot of money, and big builders have taken note. National brands are very good at making lots of homes very quickly, cheaply, and effectively. But the question is: can they make good green homes applying the same techniques? […]