McGraw Hill Construction, a part of McGraw Hill Financial (NYSE: MHFI), today released findings from a new Green Home Builders and Remodelers Study at the National Association of Home Builders (NAHB) International Builders' Show in Las Vegas. Green homes comprised 23% of the overall residential construction market in 2013 and are expected to grow to between 26% and 33% of the market by 2016. This equates to a doubling in the value of green home construction over three years, growing from $36 billion in 2013 to $83-$105 billion in 2016, based on the current McGraw Hill Construction forecast for total residential construction.
According to McGraw Hill Construction research dating back to 2006, the green home building market most rapidly accelerated during the housing downturn when builders experienced in green remained in business at higher proportions than those not knowledgeable about energy-efficient and green home building. As the residential market improves, indications are that the residential market is becoming bifurcated, with green builders accelerating the depth of their green work, and new or returned entrants into the market focusing on traditional construction practices.
"Green experience was a significant part of what kept builders in business during the recession," said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw Hill Construction, "and now, those same firms are embracing the competitive advantage they earned by deepening their delivery of energy-efficient and green homes. We also see firms reentering the market that are using traditional home building practices versus green practices because that's what they know. However, the broader availability of green building products and practices, a more educated consumer and an increase in activity at the regulatory level will also encourage this group of builders to learn green practices over time."
The study shows that the top drivers to increased green home building activity include changes in codes and regulations, better quality, wider availability and affordability of green products, energy costs, and competitive advantage.
The green home building study, produced by McGraw Hill Construction in conjunction with the NAHB, is the fourth in a series that dates back to 2006. It was designed to provide key insights into market opportunities, backed by proprietary research surveys and the power of the Dodge database. The study reveals business benefits afforded by green building:
- Competitive marketing advantage: 51% of builders and remodelers find that it is easier to market green homes, up from 46% in 2012 and 40% in 2008.
- Customer willingness to pay for green features:
o 68% of builders (up from 61% in 2011) report their customers will pay more for green, with 23% reporting that their customer will pay more than 5%
o 84% of remodelers report the same (up from 66% in 2011), with 55% reporting their customers will pay more than 5% for green features.
"This study shows that more and more builders are incorporating environmentally sensitive and energy and resource efficient techniques into traditional home building practices, and we expect to see even stronger growth in the coming years," said Matt Belcher Co-Chair of NAHB's Energy & Green Building Subcommittee and a Builder from Wildwood, MO. "Green building expertise provided builders and remodelers with a competitive advantage during the housing downturn, and now as the market continues to recover, NAHB members stand ready to meet the increased demand."
In 2013, 16% of builders were dedicated to green building with more than 90% of their projects green, and another 20% were highly invested in green activity with 61% to 90% of their projects green. By 2015, that is expected to increase, with 20% of builders expecting to be exclusively working on green buildings, and 24% doing 61% to 90% green work. Remodelers are also increasing their attention to green work, with 16% reporting more than 60% of their projects are green today, expected to grow to 23% doing this amount of green remodeling in 2015 and 32% by 2018.
This spring McGraw Hill Construction will publish its 4th SmartMarket Report on the green home building marketplace, which will include these findings with additional analysis and new market research data on the trends of the multifamily builder.
Monday, June 9, 2014
Friday, April 11, 2014
Green is the color of satisfaction, survey says
Are green home buyers happy home buyers? A new survey shows that they are.
More and more consumers are looking for green—or high-performance—homes that are designed to save energy and water and that incorporate locally sourced materials. Choosing a builder or remodeler who holds the NAHB Certified Green Professional (CGP) or Master Certified Green Professional designations is one way to find someone with the latest knowledge of these high-performance practices.
These industry professionals have studied the interplay between energy efficiency and indoor air quality, understand the principles of environmentally sensitive lot design and are trained to help their buyers make decisions to result in a home that is green as they want it to be.
Many of these professionals also turn to certification programs such as the ENERGY STAR and whole-house certification programs such as those based on the ICC National Green Building Standard (NGBS), a nationally accredited rating system that forms the foundation of their training, like our CHiP Home Program.
The result: Measurable customer satisfaction.
Released in February, the survey conducted by the firm GuildQuality showed that home owners who purchased a home certified to the NGBS are overwhelmingly likely to be glad they did.
Here’s what the study found:
· 94% would recommend a green home to a friend.
· 92% would purchase another green home.
· 71% of respondents believe that green homes are, overall, of higher quality.
· 55% knew their home may have cost more than a non-green home, but believed the benefits outweighed the cost.
· 90% were satisfied knowing they “did the right thing” in buying a green home.
These consumers were looking for a home built to provide lower utility bills, simpler maintenance and better energy efficiency—and their green homes delivered. In fact, when asked what green related aspects of their home they were least satisfied with, the overwhelming majority listed, “none.”
What does it mean when a home is certified to the National Green Building Standard? It means that the builder has met—and then exceeded—requirements that incorporate energy, resource and water efficiency, indoor environmental quality and less intrusive site development practices into the construction of the home.
Certified homes also come with a green “owner’s manual” to help you maintain your home’s high-efficiency features.
You can find a CGP or Master CGP at nahb.org/designationsdirectory, learn more about the local CHiP Home Program and contact the HBA Green Building Council at (803) 256-6238 for assistance in finding a professional to help you build or remodel your green dream home.
More and more consumers are looking for green—or high-performance—homes that are designed to save energy and water and that incorporate locally sourced materials. Choosing a builder or remodeler who holds the NAHB Certified Green Professional (CGP) or Master Certified Green Professional designations is one way to find someone with the latest knowledge of these high-performance practices.
These industry professionals have studied the interplay between energy efficiency and indoor air quality, understand the principles of environmentally sensitive lot design and are trained to help their buyers make decisions to result in a home that is green as they want it to be.
Many of these professionals also turn to certification programs such as the ENERGY STAR and whole-house certification programs such as those based on the ICC National Green Building Standard (NGBS), a nationally accredited rating system that forms the foundation of their training, like our CHiP Home Program.
The result: Measurable customer satisfaction.
Released in February, the survey conducted by the firm GuildQuality showed that home owners who purchased a home certified to the NGBS are overwhelmingly likely to be glad they did.
Here’s what the study found:
· 94% would recommend a green home to a friend.
· 92% would purchase another green home.
· 71% of respondents believe that green homes are, overall, of higher quality.
· 55% knew their home may have cost more than a non-green home, but believed the benefits outweighed the cost.
· 90% were satisfied knowing they “did the right thing” in buying a green home.
These consumers were looking for a home built to provide lower utility bills, simpler maintenance and better energy efficiency—and their green homes delivered. In fact, when asked what green related aspects of their home they were least satisfied with, the overwhelming majority listed, “none.”
What does it mean when a home is certified to the National Green Building Standard? It means that the builder has met—and then exceeded—requirements that incorporate energy, resource and water efficiency, indoor environmental quality and less intrusive site development practices into the construction of the home.
Certified homes also come with a green “owner’s manual” to help you maintain your home’s high-efficiency features.
You can find a CGP or Master CGP at nahb.org/designationsdirectory, learn more about the local CHiP Home Program and contact the HBA Green Building Council at (803) 256-6238 for assistance in finding a professional to help you build or remodel your green dream home.
Monday, March 31, 2014
Carolina Diversified Builders at the 2014 Home & Garden Show
Bill Seymour shows us Carolina Diversified Builders log homes, SIPS construction, timber frame construction, ICFs and more at the 2014 Carolina Classic Home & Garden Show! [1:54] See more videos from the show and about green building in general at our Video Learning Center.
Friday, February 14, 2014
Sealing Your Attic Door Access for Energy Efficiency
Joseph Gilmore of Gilmore Consulting Services, LLC shows how easy it is to reduce energy loss through an attic access opening. [1:03]
Builders talk High Performance - Part 1
We asked a few of our CHiP Home Program builders about building high-performance homes. Here are answers to some of our questions...
Q: What makes a home High Performance?
A: Stan O'Brien of Paradime Construction replied: A High Performance Home is a system of parts that are all working together to give the occupants a better, less expensive home environment. You cannot look at only upgrading one part of the home because the other parts won’t perform at the ideal level. One quick example is, if you modify your insulation package and still put in the same size HVAC system then this system will not perform well and actually create harmful effects on the living environment. This is why a qualified third party inspector is required for High Performance homes – to make sure all the systems are working together and harmful effects are avoided.
A: Charlie Barber of Essex Homes replied: High Energy Efficiency which, in turn, saves the homeowner money on utilities and is more comfortable to live in.
Q: What do you see as the the 2014 new high performance items?
A: Charlie Barber said: LED bulbs, may begin to see more solar.
A: Stan O'Brien said: Most of my clients don’t want to spend extra money to make a home perform better. But the clients who do should look into energy monitoring devices that can help them modify the ways they interact with their home, to save money and live better.
We asked more questions and will post them along with answers soon.
Q: What makes a home High Performance?
A: Stan O'Brien of Paradime Construction replied: A High Performance Home is a system of parts that are all working together to give the occupants a better, less expensive home environment. You cannot look at only upgrading one part of the home because the other parts won’t perform at the ideal level. One quick example is, if you modify your insulation package and still put in the same size HVAC system then this system will not perform well and actually create harmful effects on the living environment. This is why a qualified third party inspector is required for High Performance homes – to make sure all the systems are working together and harmful effects are avoided.
A: Charlie Barber of Essex Homes replied: High Energy Efficiency which, in turn, saves the homeowner money on utilities and is more comfortable to live in.
Q: What do you see as the the 2014 new high performance items?
A: Charlie Barber said: LED bulbs, may begin to see more solar.
A: Stan O'Brien said: Most of my clients don’t want to spend extra money to make a home perform better. But the clients who do should look into energy monitoring devices that can help them modify the ways they interact with their home, to save money and live better.
We asked more questions and will post them along with answers soon.
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