A recent report in Mortgage News Daily has found builders who had experience with building green homes were likely to have been better equipped to deal with the recession. This is based on a new study on green home building and energy efficiency which found builders with this type of experience were more likely to have remained in business compared to builders without this type of knowledge.
Last year the number of green homes constructed in the residential market accounted for 23%, and between now and 2016 this market share is anticipated to grow to between 26% and 33%. These figures mean the value of the green home construction business will have doubled over just three years, expanding from $36 billion in 2013 to reach between $83 billion and $105 billion in 2016. These figures are based on the McGraw Hill Construction forecast for residential construction as the publisher recently released the Green Home Builders and Remodelers Study.
McGraw Hill Construction has found green construction is growing as the economy continues to improve, as communities begin to incorporate green principles into local building codes and regulations. Green products are increasingly becoming more affordable and more available. In addition the market is being pushed forward by rising energy costs and educated consumers who are actively looking for a home with green features.
According to the study more than half of builders and remodelers found it easier to market green homes, compared with just 40% in 2008 and 46% in 2012. Some 68% of builders have found customers are willing to pay more for green construction, with nearly a quarter reporting customers will pay in excess of 5% for these features. It's the same story for remodelers, as the 55% of their customers will pay more than 5% for homes with energy saving advantages.
Last year 16% of builders were dedicated to green construction, and more than 90% of their projects were green. Another 20% of builders were motivated to include green features with between 61% and 90% of their projects being green. By next year this figure is expected to have increased with 20% of builders exclusively working on green buildings, while nearly a quarter will be working on projects that are between 61% and 90% green. Green meriting remodeling is also expected to continue growing. At the moment 16% of remodelers report that more