GREEN BUILDING GROWING DESPITE DOWN MARKET

publication date: Nov 5, 2008

NEW YORK, Oct. 7 - A report released by McGraw-Hill Construction in partnership with the National Association of Home Builders (NAHB) National Green Building Program depicts a continued upward trend in green home building.

The new SmartMarket Report, "The Green Home Builder: Navigating for Success in a Down Economy," covers market opportunities, key triggers and obstacles and trends in green home building practices from 2001 to 2007, such as the impact of the down market on this sector.
Major findings include:

• Forty percent of builders find "building green" makes it easier to market in a down economy; 16 percent say it makes green construction much easier.
• In 2009, 21 percent of builders expect 90 percent of its projects to be green.
  Sixty percent of builders claim homebuyers are willing to pay more for green homes. This is greater than the opinion in 2006 (56 percent).
• "Quality" is the top driver behind green home building, which is a shift from the top driver in 2006, "doing the right thing." This seems to indicate that green homebuyers in today's market are not just "green consumers;" they are also buying a green home for investment and performance reasons.
• Fourteen percent of builders find that today's homes are more than 30 percent more environmentally friendly than two years ago. Eighty-five percent think that energy-efficient features significantly contribute to a home's environmental friendliness.
• Builders use products that lead to energy efficiency far more than other elements. In particular, they focus on air sealing/tight construction, increased insulation, water-efficient plumbing fixtures, and Energy Star products.
• The U.S. region with the best growth in green building is the Pacific, followed by the South Atlantic and Mountain regions. The East South Central region has the lowest growth.

The report also features special sections detailing government regulations, NAHB Green Home Rating Systems, and case studies on different types of green homes (e.g., customized, affordable and large productions). Commentary on green-washing, product availability, brand awareness and certification provides further background data and analysis of the market.

To order a copy of "The Green Home Builder: Navigating for Success in a
Down Economy," visit http://greensource.construction.com/resources/smartMarket.asp. Previous SmartMarket Reports also available online.