Market Recognizes a Steep Rise in Green Building Values
Surprising facts about the new construction market reveal that green building is becoming a large percentage of single-family and multi-family construction projects. A report released by McGraw Hill called the Construction’s Dodge Construction Market Forecast states that single-family construction and multi-family construction account for 45% of the value of construction projects in the United States in 2014. A separate report released in the Forecast, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,” shows that in 2014, 62% of single-family builders and 54% of multi-family builders have 15% of their business that is green building. Those numbers are supposed to increase by 2018 to 84% and 79% respectively.
Probably unknown to most people, green building has become so popular that there is a segment of the single-family builder market which is building over 90% of its projects with green building techniques. That percentage is 19%, and the report stated that this number was expected to double to 38% by 2018. Green builders have found that government incentives and grant money is available for those builders that utilize green building techniques. This has “inspired” business men and women to employ these techniques, and over the past 10 – 15 years, the market has come to a certain level of expectation when it comes to green, environmentally friendly new construction.
The report by McGraw Hill showed that the consumer market believes that green building shows a higher quality of home as well as a greater value of home and therefore will pay more for this quality. 73% of single family builders (up from 61% since the last report) and 68% of multifamily builders say consumers will pay more for green homes.
“This new study demonstrates phenomenal growth in green building, with more builders engaging in sustainable building practices than ever before,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “While growth in green in the single family market is driven more by high quality and customer demand, the multifamily market is more driven by cost factors such as the availability of government or utility incentives, as well as enhancing their competitive position and corporate image. All are compelling reasons for the industry to engage with this continuously growing market.”
Ron Lee Homes in St. Tammany Parish is a Certified Green Builder – a designation earned from the National Association of Home Builders. Ron Lee constantly is educating himself and his staff to employ innovative green techniques in all homes built in Mandeville, Covington, Madisonville, and Abita Springs, Louisiana. For more information about building your new custom home by Ron Lee Homes, Contact Us at 985-626-7619 or E-mail [email protected].
