Report: Green building market driven by quality and value
The green construction market is prospering, according to a new report from The McGraw-Hill Companies, as the quality and value associated with energy efficient buildings has driven the growth in the sector.
According to a release from the company, the "SmartMarket Report: New and Remodeled Green Homes: Transforming the Residential Market at the National Association of Home Builders’ (NAHB) National Green Building Conference and Expo" outlines how the sector is increasing its share of the total market each year.
According to the report, the sector was estimated to comprise 17 percent of the construction market in 2011, equating to roughly $17 billion. These numbers are expected to rise in the coming years, with an expected market share of 29-to-38 percent by 2016. This would potentially produce more than $87-114 billion at the peak of this increase, based on the five-year forecast from the company.
In the residential market, there has been a move to green residences due to the higher value that is attributed with these homes due to long-term savings and a lessened environmental impact.
"In the current residential market, there is an enormous need to differentiate your homes for consumers," says Harvey Bernstein, Vice President of Industry Insights and Alliances at McGraw-Hill Construction. "When builders are able to offer homes that not only are green, but also offer the combination of higher quality and better value, they have a major competitive edge over those building traditional homes."
The report was designed to provide key insights into the market for real estate professionals, industry leaders and potential homebuyers, according to the release.
Sustainable Business reported that specific components of a home, such as lighting and heating and cooling systems, are becoming increasingly important to people who want to either buy or sell a home or apartment. Indoor air quality is also a factor that is becoming a major consideration for individuals looking to invest in a building.
This type of push for an acceptance of green buildings due to environmental and cost factors is exactly what the U.S. Department of Energy (DOE) is trying to lead in the U.S. The agency designated an effort, the Energy Efficient Buildings Hub (EEB), to expedite this transition.
The EEB is comprised of organizations from academia, the private sector, energy development industry and government and is working to transform commercial structures in the Greater Philadelphia region.