Tuesday
July 22, 2014

Builders to Widen Stock of Green Homes by 2018

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Builders to Widen Stock of Green Homes by 2018

An upswing in green building is expected over the next four years as more widespread adoption takes hold, according to survey respondents in McGraw Hill’s latest SmartMarket Report.

More than one-third of single-family builders, or 34 percent, report that more than 60 percent of their projects are "green." What’s more, 62 percent of builders say they expect that more than 60 percent of their single-family homes will be green by 2018.

The multifamily market is also going green. The number of multifamily builders who say that 90 percent of their current projects are green is expected to triple by 2018, rising from 6 percent to 18 percent, according to the report. Forty-two percent of builders say that more than 60 percent of their projects will be green by 2018. (Currently, 23 percent are operating at that level.)

Builders say that buyers are showing more willingness to pay for green features. In 2013, 73 percent of single-family builders and 79 percent of single-family remodelers said that buyers were willing to pay a 3 percent to 5 percent premium for green homes. For multifamily homes, 68 percent of builders said that buyers were willing to pay more.

In the survey, builders identified the following main drivers to building more green homes: energy cost increases; code, ordinance, and regulation changes; and green-product availability and affordability.

Source: “More Single-Family and Mulitfamily Builders and Remodelers Expect to Go Green,” EcoBuilding Pulse (June 10, 2014)

Read more:

6 Ways to 'Green' a Home
Bill Would Help Finance Green Home Purchases
Home Owners Love Their Green Homes