Green Home Building Market Expected to Double by 2012

McGraw-Hill Construction, a division of The McGraw-Hill Companies, last week presented the findings of its latest market research investigating “green” home building, focusing 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 is co-sponsored by the National Association of Home Builders, 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, by 2012, the market is expected to double to 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 as the most important reason for building green. Previously, builders were motivated by energy cost savings of green homes and doing the right thing, which still came in No. 2 this year. This is likely the result of green home marketing and how it improves quality of life.

“We have hit the tipping point for builders going green,” said Harvey 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.”

“It’s official. Green has gone mainstream,” said Ray Tonjes, chair of the Green Building Subcommittee for NAHB. “And now, the NAHB National Green Building Program is making it easier for home builders to provide sustainable, environmentally friendly homes for their customers.”

For more information on NAHB, visit

The results presented at the NAHB Green Building Conference will be incorporated into a new issue of the McGraw-Hill Construction SmartMarket Report series, available late June at
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