Energy efficiency is driving green housing, report says

Energy efficiency is the most important development and driver in making housing green, according to a recent industry survey by McGraw Hill Construction (MHC).

The report, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,” surveys builder and remodeler members of the National Association of Home Builders (NAHB) and reveals the evolution of green building for single family homes from boom to bust to recovery through comparisons with previous studies from 2006 to 2011.

The survey found that 62 percent of single-family builders and 54 percent of multifamily developers are doing more than 15 percent of their projects as “green.” For single-family, 19 percent of builders are doing more than 90 percent projects as green.

The survey indicates that increasing consumer interest is a reason for growth in this area. MHC defines a green homes as “one that is either built to a recognized green building standard or an energy- and water-efficient home that also addresses indoor air quality and/or resource efficiency.”

The main appeal to green building is energy efficiency, according to the survey. Seventy-five percent of single-family builders and 84 percent of multifamily builders said that improved energy efficiency was the biggest factor making their projects more green than two years ago.

Harvey Bernstein, McGraw Hill Construction’s vice president of industry insights and alliances explains, “Greater consumer interest in green homes has contributed to the ongoing growth, leading us to anticipate that by 2016, the green single family housing market alone will represent approximately 26 – 33 percent of the market, translating to an $80 billion to $101 billion opportunity based on current forecasts. The findings also suggest that lenders and appraisers may be starting to recognize the value of green homes, making it a factor that could help encourage the market to grow if there is more widespread awareness across the US.”

Other factors mentioned were improved indoor environmental quality, water conserving products/practices, and material conservation and recycling.

While builders report a higher interest in green, the survey showed that only 11 percent of single-family builders and remodelers are constructing homes that are greener in 2013 than in 2011.

View the full report here.