The share of single-family homes touting sustainable features is expected to increase fivefold from 2011 to 2016, shifting expectations for builders and remodelers who continue to boost business by offering green services during a period of otherwise-slow economic growth. This information comes from a report released earlier this month by McGraw-Hill Construction, which surveyed more than 400 NAHB-member builders and remodelers on their current and anticipated green residential building activity.
The survey cited both the higher quality of homes boasting energy-efficiency features and the bottom-line utility cost savings for consumers as drivers of current and anticipated growth.
McGraw-Hill projects that the share of green single-family construction will grow from 17 percent of the single-family-home market in 2011 to 29 percent to 38 percent in 2016. The increase is expected to boost the segment’s value from $17 billion in 2011 to $87 billion to $114 billion by 2016.
Half of builders surveyed said that at least 16 percent of their projects in 2011 qualified as green. Eight in 10 builders expect 16 percent or more of their projects to be green by 2016 , and among that group, one-third predicts that at least 90 percent of their projects will be green by 2016.
Two-thirds of remodelers surveyed said that fewer than 16 percent of their projects were green in 2011. More than three-quarters of the group said that by 2016, at least 16 percent of their projects will be green, with one-third of respondents expecting their green portfolio to contain 60 percent to 90 percent of their projects overall.
Nearly half of the builders and remodelers surveyed said that marketing green services is easier in a down economy. And six in 10 builders and remodelers found that homeowners are willing to pay more for green features.
A part of the company’s SmartMarket series, the 56-page report, “New and Remodeled Green Homes: Transforming the Residential Market,” was presented May 1 at NAHB’s National Green Building Conference and Expo.