Tag Archives: International Builder’s Show

Green Homes Market Expected to Increase Five-Fold by 2016

McGraw-Hill Construction, a part of The McGraw-Hill Companies (NYSE: MHP), today released findings from a new Green Home Builders and Remodelers Study at the National Association of Home Builders (NAHB) International Builders’ Show in Orlando. Green homes comprised 17% of the overall residential construction market in 2011 and are expected to grow to between 29% and 38% of the market by 2016. By value, this equates to a five-fold increase, growing from $17 billion in 2011 to $87-$114 billion in 2016, based on the five-year forecast for overall residential construction.

According to the study, construction industry professionals report an even steeper increase in green home remodeling; 34% of remodelers expect to be doing mostly green work by 2016, a 150% increase over 2011 activity levels. Many home builders have shifted to the remodeling market due to the drastic drop in new home construction. In fact, 62% of the builders who do both new and remodeling work verified that the economy has increased their renovation work.

“The housing market is critical to the U.S. economy,” said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw-Hill Construction, “and the results of our study show that despite the drastic downturn in housing starts since 2008, green has grown significantly as a share of activity– indicating that the green market is becoming an important part of our overall economic landscape.”

The green home building study, produced by McGraw-Hill Construction in conjunction with the NAHB and Waste Management, is designed to provide key insights into market opportunities, backed by proprietary research surveys and the power of the Dodge database. The study reveals business benefits afforded by green building, such as a competitive marketing advantage: 46% of builders and remodelers find that “building green” makes it easier to market themselves in a down economy, and an overwhelming 71% of firms that are dedicated to green home building report the same.

“This study demonstrates phenomenal growth in green building and indicates that we can expect even larger increases in the coming years,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “In a sample of NAHB builder and remodeler members, nearly 90% reported building green at some level. This is a powerful testament to the importance of green home building–and transforms the way we think of homes overall.”

By 2016, many more builders anticipate that they will be dedicated to green building work on over 90% of projects– 33% expect to be dedicated to green work in 2016, up from 17% in 2011. Remodeling will grow even more dramatically– 22% of remodelers report that they anticipate they will be dedicated to green work in 2016, nearly triple the 8% who report being dedicated to green work in 2011. These builders are clued into the revenue opportunity afforded by green building and know that home buyers will pay more for green homes, according to 61% of builders and 66% of remodelers.

“Home buyers and builders increasingly want to do what’s right for the environment,” said Jim Halter, VP for Construction Solutions, Waste Management. “This trend has been taking off within our business as customers look to recycle and divert more materials from landfills. We’re excited to see the results of the study; they validate the services we offer.”

Many factors are driving the green homes market, with “higher quality” and “increases in energy costs” topping the list, indicating that today’s green homebuyer is not just a green consumer. Buyers recognize that green homes have lower bills due to higher building performance. The reported costs of building a green home have also gone down significantly. Builders report that the cost to go green is now 7%, as compared to 10% in 2008 and 11% in 2006.

While green is growing across the U.S., three regions are seeing higher than average growth. The West Coast has seen the highest green growth; the Midwest’s northern region, west of the Mississippi, is second highest; and New England is ranks third.

McGraw-Hill Construction will continue analyzing the results of the Green Home Builders and Remodelers Study and release a printed report in April during the NAHB’s National Green Building Conference and Expo in Nashville. Further findings, including remodeling details, green technologies, and green product adoption in green homes, will be included in that report. For more details in the meantime, visit http://bit.ly/wsF2gJ.

Green Home Growth is Expected as Prices Fall

Green-built homes will see an increase in market share that is directly proportional to their pricing, according to representatives from four suppliers and product managers who recently spoke at this year’s National Association of Home Builders International Builders’ Show in Orlando, Fla. The representatives cited a desire for cost-effectiveness among homebuyers as the reason for the expected growth.

“The key is value for every stakeholder in the process,” from the manufacturer to the builder and the home buyer, said Richard Davenport, director of sustainable construction for BASF.

The good news, said Kohler’s Rob Zimmerman, is that product manufacturers have been able to focus on the creation of new technology during the current building downturn “that will make green building more affordable.”

“Our commitment is to use our resources wisely,” said Christine Marvin of Marvin Windows and Doors.

The speakers at the event were sponsoring the NAHB’s fourth annual Green Day, an event that commemorates growth in green, energy-efficient and sustainable homebuilding and remodeling practices.

The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, design, housing finance, other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country.

For more information, visit the NAHB website.

Meet Green Builder Magazine at the International Builder Show

In an effort to reduce their carbon footprint, many builders and home buyers have become interested in green homes.  Green Builder Magazine caters directly to this audience and will have editors ready to meet-and-greet at the International Builders’ Show in Las Vegas.

All three of the publication’s editors will spend time in their booth (C4861) on the following schedule:

  • Ron Jones, President and Editorial Director – Jan. 19 10-11 a.m. and Jan. 20 11 a.m.-12 p.m.
  • Matt Power, Senior Editor – Jan. 19 11 a.m. – 12 p.m.
  • Cati O’Keefe, Editor-in-Chief – Jan. 20 10-11 a.m.

While visiting the booth, you can learn about Green Builder Magazine’s retrofit project: ReVISION Vegas.  The 1960’s-era home is being outfitted with enough energy-saving bells and whistles to bring its net energy consumption to zero.

ReVISION Vegas, located near the Las Vegas Convention Center, will be open for tours next week.  Tours are available Jan. 19 and Jan. 21 from 3-5 p.m.  Contact Sara Gutterman at sara@greenbuildermag.com for directions and transportation information.

“Reduce, Reuse, Recycle” is an increasingly popular mantra for consumers.  Builders and re-modelers interested in green construction should be sure to visit Green Builder Magazine’s booth as well as tour ReVISION Vegas.

New American Home Celebrates 25 Years

This year at the International Builder’s Show the New American Home – a “real world” laboratory demonstrating new concepts, materials, designs and construction techniques – was all Green in honor of its 25th anniversary. Attendees of this year’s IBS were treated to a tour of the new home located in the prestigious 11-lot golf and country club, Waters Edge, in Orlando. The 6,725 sq-ft plantation-style house was loaded with cutting edge technology for energy efficiency and green features like:

  • the front hall cupola that acts as a solar chimney by drawing hot air up and out as it rises naturally to the highest point in the home, augmenting the cooling process and decreasing demand on the mechanical cooling systems
  • a sealed, fully conditioned attic that eliminates the intrusion of moisture-laden air and unwanted rust and mold and tempers the space Continue reading