According to the latest McGraw-Hill construction SmartMarket Report the share of green homes on the market is expected to grow by leaps and bounds in the next four years.
“In the current residential market, there is an enormous need to differentiate your homes for consumers,” says Harvey Bernstein, Vice President of Industry Insights and Alliances at McGraw-Hill Construction. “When builders are able to offer homes that not only are green, but also offer the combination of higher quality and better value, they have a major competitive edge over those building traditional homes.”
Consumers are seeking out green homes for a couple good reasons. First, they save the consumer money in the long-run. Also, they are seen to be of higher quality construction.
The report found other factors are driving growth in the green home market. . About two-thirds of builders and remodelers surveyed said they have customers requesting green homes and projects. These consumers are seeking out lower energy costs.
The higher costs of building green are less of a factor now than they were in 2008. Today’s market has a good supply of green products meaning prices have fallen more in line with traditional projects.
The report also noted, “Higher quality for both new home builders and remodelers. For those doing a high volume of green homes (at least 60% of the homes they build), its importance is magnified, with 90% who regard higher quality as an important trigger for building green, compared to 72% of builders overall.”
There is a definite shift taking place in the market as green practices spring to the forefront.
The report found that “more than 80% report that energy efficiency is making today’s homes greener compared to two years ago. Use of energy-efficient features is pervasive in the market – the top practice by nearly all surveyed builders and remodelers, regardless of their level of green building activity.”
Also tops in consideration are indoor air quality, with 95 percent of high volume home builders including these features, and durable materials being emphasized by remodelers.
“These findings confirm the shift we’ve seen in the market,” says Jim Halter, Vice President, Construction Solutions for Waste Management. “Builders and remodelers are placing more emphasis on energy efficiency, increases in sustainability focused waste management practices and more products made from post-consumer materials. These important factors are pushing our industry forward.”
Published: May 7, 2012
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