According to McGraw-Hill Construction, the market for green homes is 0.3% of all homes in the U.S., a market of about $2 billion. The homes contain elements in three of five environmental building categories.
The market has risen by 1% since 2005, up from .2%, according to the report, when homes were considered green if they had at least one green element, such as energy efficient appliances.
“Though it’s still a small number, builders are getting it when it comes to the value of real green homes, and it appears homeowners are too,” says Harvey M. Bernstein, McGraw-Hill Construction vice president of Industry Analytics, Alliances and Strategic Initiatives. “It’s also powerful to find that people are really starting to commit to building truly green homes, moving away from just adding energy efficient appliances or one aspect that’s green. They’re paying attention to the holistic benefit of green.”
Homeowners are extremely happy with their green homes, with 85% happier with their new green homes versus their previous non-green ones. And they’re not shy about sharing those feelings. 28% of green homeowners reported first hearing about green homes through word of mouth.
The survey, conducted by McGraw-Hill Construction, part of The McGraw-Hill Companies (NYSE: MHP), and co-sponsored by the National Association of Home Builders (NAHB), finds that homeowners are happier with their new green homes than with their previous homes, and that they are eager to recommend buying green to others The survey found that:
— Green homeowners are affluent and well educated, in his/her mid forties and married, and also more likely to be from the Southern or Western states. Women are also more likely to be green homeowners.
— Home operating costs matter. 63% report lower operating and maintenance costs as the key motivation behind buying a green home. Nearly 50% report environmental concerns and family health as motivators.
— The top three obstacles to buiding green homes, all hovering over 60% of respondents, were oriented around education, additional costs involved in green homes and the availability of the homes. However, when looking at the “biggest” obstacles, green homeowners view education as the biggest hurdle to overcome.
Another interesting finding is the high prevalence of green products being implemented during home remodeling. Approximately half the overall U.S. homeowner population has recently done some renovation work on their home, and approximately 40% of that population is doing so with green products.
“This is another powerful finding,” says Bernstein. “As home prices increase and homeowners stay in their homes longer, remodeling becomes a key market opportunity. It’s encouraging that there is already so much of the community aware of these green product options and, more importantly, using them.”
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