Image courtesy Flickr user Ervins Strauhmanis under Creative Commons license.
Ca-ching! Green homes comprised 23 percent of the residential construction market in 2013 and had a market share valued at $36 billion, according to a new "Green Home Builders and Remodelers Study" from McGraw Hill Construction that was released at the National Association of Home Builders' (NAHB) International Builders' Show this week. What's more, this market is hot: Green home building is expected to grow to between 26 percent and 33 percent of the market by 2016, jumping the valuation estimate to $83-$105 billion.
According to a press release from McGraw Hill Construction, the green home building market actually accelerated during the housing downturn, with builders with green experience remaining in business at higher proportions than builders who were not as familiar with energy efficient and green home building. Code and regulation changes, rising energy costs, and wider availability of better quality, affordable green products also drove the market growth. However, the company asserts that as the overall residential market improves, a split could be looming between green builders who dig deeper into the high-performance realm and those builders who continue to focus on traditional construction practices.
Among the other study highlights:
- Green building offers a competitive marketing advantage: The number of builders and remodelers who indicate that it is easier to market green homes rose 5 percent from 2012, to 51 percent.
- Homebuyers are showing builders the money: 68 percent of builders say their customers will pay more--with 23 percent of respondents saying their clients will pay above a 5 percent premium--for green features. On the remodeling side, 84 percent of remodelers report that clients would pay a premium, with 55 percent indicating that clients would pay more than a 5 percent difference.
"This study shows that more and more builders are incorporating environmentally sensitive and energy and resource efficient techniques into traditional home building practices, and we expect to see even stronger growth in the coming years," said Matt Belcher, co-chair of NAHB's Energy & Green Building Subcommittee, in the press release on the study.