Building Green Keeps Growing

WASHINGTON, DC - Building green continues to grow in importance, according to a new McGraw-Hill Construction survey co-sponsored by National Association of Home Builders. "It's official. Green has gone mainstream," said Ray Tonjes, chair of NAHB's green building subcommittee. "We're ready for the market transformation."

The new survey focuses on changes in green building activity between 2001 and 2007, the effect of the down market on green home building, opinions and preferences of builders for green materials and processes, and triggers and obstacles affecting green building expansion.

Major findings: This year residential green building is expected to reach $12 billion to $20 billion (6% to 10% of the market). By 2012, it should double to 12% to 20% of the market-or $40 billion to $70 billion. 40% of builders think green building helps market homes in a down market. Quality has emerged as the most important reason for building green.

Previously, builders were motivated by energy cost savings of green homes and doing the right thing. The change is likely due to green home marketing and how it improves quality of life. "We have hit the tipping point for builders going green," said McGraw-Hill's Harvey Bernstein. "This year, the number of builders who are moderately green (with 30% green projects) has surpassed those with a low share of green (those who are green in less than 15% of their projects).

He said that next year will bring even greater growth, with highly green builders (those with 60% green projects) surpassing those with a low share of green. "This year has seen an 8% jump over last year, and we expect another 10% increase next year."