Market research from McGraw-Hill Construction, New York, reports that the green home building market has “tipped” and is expected to double by 2012. The company’s survey focused on changes in green building activity between 2001 and 2007; the impact of the down market on green home building; opinions and preferences of builders for green materials and processes; and triggers and obstacles affecting green building expansion. The major findings of the survey, which was cosponsored by the National Association of Home Builders, Washington, D.C., include:
• The residential green building market is expected to be worth $12 billion to $20 billion (6 to 10 percent of the market) this year. • In five years (2012), the market is expected to double from 12 to 20 percent market share or $40 billion to $70 billion. • Forty percent of builders think green building helps them market their homes in a down market. • Quality has emerged in this down market over energy cost savings as the most important reason for building green. “We have hit the tipping point for builders going green,” said Harvey M. Bernstein, McGraw-Hill Construction vice president of industry analytics, alliances and strategic initiatives. “This year the number of builders who are moderately green—those with 30 percent green projects—has surpassed those with a low share of green—those who are green in less than 15 percent of their projects. Next year, we will see even greater growth, with highly green builders—those with 60 percent green projects—surpassing those with a low share of green. This year has seen an 8 percent jump over last year, and we expect another 10 percent increase next year.” The results will be incorporated into a new issue of the McGraw-Hill Construction SmartMarket Report series, which is available at www.analyticsstore.construction.com.
