Finance Globe

U.S. financial and economic topics from several finance writers.
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Green Home Building on the Rise

Green home building is projected to continue to climb in the next few years as Americans increasingly search out energy-efficient and environmentally responsible homes, industry experts reported this week.

McGraw Hill Construction reported that last year, the green home-building industry accounted for 23% of residential construction and is projected to grow to between 26% to 33% by 2016. This increase would more than double the value of the industry, growing from $36 billion in 2013 to $83-$105 billion in 2016.

The green home building market grew most rapidly during the housing downturn when builders experienced in green remained in business at higher proportions than those not knowledgeable about energy-efficient and green home building.

"Green experience was a significant part of what kept builders in business during the recession," said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw Hill Construction, "and now, those same firms are embracing the competitive advantage they earned by deepening their delivery of energy-efficient and green homes. We also see firms reentering the market that are using traditional home building practices versus green practices because that's what they know. However, the broader availability of green building products and practices, a more educated consumer and an increase in activity at the regulatory level will also encourage this group of builders to learn green practices over time."

The study shows that the increase in green home building is being driven by changes in codes and regulations, better quality, wider availability and affordability of green products, energy costs, and competitive advantage.

And for those wondering how buyers feel about their purchase after they've signed the papers and moved in, the good news for the industry and the environment is that green homeowners appear to be very happy about their decision.

According to a separate report - a survey commissioned by the NAHB and conducted by GuildQuality - 94% of homebuyers said they would recommend a green home to a friend, 92% would purchase another green home, and 90% were satisfied knowing they “did the right thing” in buying a green home.

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Monday, 27 May 2024

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