Green homes comprised 17 percent of the overall residential construction market in 2011 and are expected to grow to between 29 and 38 percent of the market by 2016. By value, this equates to a five-fold increase, growing from $17 billion in 2011 to $87-$114 billion in 2016, based on the five-year forecast for overall residential construction.
McGraw-Hill Construction released a Green Home Builders and Remodelers Study at the National Association of Home Builders (NAHB) International Builders’ Show in Orlando recently.
According to the study, construction industry professionals report an even steeper increase in green home remodeling; 34 percent of remodelers expect to be doing mostly green work by 2016, a 150 percent increase over 2011 activity levels. Many home builders have shifted to the remodeling market due to the drastic drop in new home construction. In fact, 62 percent of the builders who do both new and remodeling work verified that the economy has increased their renovation work. The study reveals business benefits afforded by green building, such as a competitive marketing advantage: 46 percent of builders and remodelers find that “building green” makes it easier to market themselves in a down economy, and an overwhelming 71 percent of firms that are dedicated to green home building report the same.
“This study demonstrates phenomenal growth in green building and indicates that we can expect even larger increases in the coming years,” says NAHB Chairman Barry Rutenberg. And it would seem that, as goes new home construction and remodeling, so goes the technology inside and around the home.