Green construction is a growth sector in the recovering housing market, McGraw Hill Construction reported June 5 when it released its report “Green Multifamily & Single Family Homes: Growth in a Recovering Market.”
The report noted that single- and multifamily housing account for around 45 percent of the value of all construction projects in the U.S., and green housing construction is showing a particular boom.
The report revealed that 62 percent of firms building new single-family homes are employing green construction techniques on at least 15 percent of them. By 2018, 84 percent of building firms expect to achieve that level of green construction activity.
For firms engaged in multifamily projects, 54 percent said that at least 15 percent of their projects are green and 79 percent of the firms said they anticipate reaching that level of green activity by 2018.
In the single-family home market, more than 19 percent of builders reported that most (90 percent) of their homes are green and the number of builders so focused on green is expected to double by 2018.
The report noted that 65 percent of single-family and multifamily builders said they use renewables on at least some of their projects, and firms that currently incorporate renewables into all projects account for 8 percent of the market and will likely grow to 20 percent by 2016.
Green growth is partially being fueled by consumers willing to pay for it; the report noted that 73 percent of single-family builders and 68 percent of multifamily builders said consumers are willing to pay more for sustainably built homes.
“Greater consumer interest in green homes has contributed to the ongoing growth, leading us to anticipate that by 2016, the green single-family housing market alone will represent approximately 26 percent to 33 percent of the market, translating to an $80 billion to $101 billion opportunity based on current forecasts,” Harvey Bernstein, vice president, Industry Insights and Alliances for McGraw Hill Construction, said in a news release. He noted that lenders and appraisers also are realizing the value of green construction.
Find more on the “Green Multifamily & Single Family Homes: Growth in a Recovering Market” report.