2008 Green Building Trends
Green Housing and Construction Data 2008
What Do Home Owners Seek in a Green Home?
Operational cost savings: 90%
Social benefits of protecting the environment: 84%
Improved occupant health: 82%
Potential for higher resale value: 73%
Source McGraw-Hill & National Association of Home Builders Survey /
April 2007
Three fourth of homeowners in a national survey said that
energy-efficient features would influence their buying decisions in a home
purchase. 51% said they would pay $5,000
to $11,000 more if it reduce their utility bills, 16% said they would pay more
than $11,000 for a green home.
Source: HAHB / 2008
10% of all new homes will be built green by the end of 2010.
Buyers are seeking sustainable lifestyles.
Source: Calvert Group and the Boston college Institute for Responsible
Investment / 2008
Size and Purchasing Power of LOHAS Segment (Lifestyles of
Health and Sustainability Segment)
$200 billion in purchasing power, 90 million people (40% of
the US
population)
Source: Residential Green Building
Report 5/07
40% of all home remodeling is being done green, over $69
billion in 2007
Source McGraw-Hill, NAHB
Broad Consumer Studies
37% of consumers feel highly concerned about the
environment, 25% feel knowledgeable, and 22% feel they can make a difference
when it comes to the environment.
Source: Yankelovich 2007
By 2010 new, green, homes are expected to generate $60
billion in sales.
Source: USGBC / 2008
Trends
“Green home building is not a fad, but a trend, and one that
is increasing at rapid rates”
Harvey Bernstein, VP, Industry Analytics & Alliances, McGraw-Hill
Construction
Home Depot and Lowes have introduced extensive lines of
green products that range from low VOC paints to recycled counter top
materials. Consumers are demanding green
product for their home improvement projects.
Source: Business Week / June 2008
In a national survey for the homebuilders industry: If
national builders wish to continue as market leaders they must quickly embrace
the opportunity to build and sell green buildings or they will lose out on a
trend that is the future.
Source: Calvert Group
/ March 2008
30% of homeowners remodel within the first 2 years of owning
a home, 70% within 5 years, up to 30% make a home improvement within 6 months
of buying a home. 40% of all remodeling is considered green.
Source: Minnesota
GreenStar / USGBC
Almost 40% of Americans who recently renovated their
dwelling did so with at least some green products.
Source: NAHB /2008
A study by the AIA shows that consumers are quickly moving
toward sustainable products, water saving products and energy saving
products.
Source: AIA / June 2008
For the first time builders with green projects have
surpassed those builders with less than 15% green projects. Estimated growth in green building is
anticipated to be up to 60% of all building projects for “green builders” next
year.
Source: NAHB / May 2008
A study by the AIA indicates that homeowner’s priorities
when selecting housing designs are focused on energy conservation first.
Source: AIA / Second quarter 2007
U.S.
demand for advance high efficiency lighting will grow 14% through 2001 (CFL,
and LED technology). This drive is an
early indicator of consumers seeking energy management solutions for
residential and commercial buildings.
Source: Freedonia Group 6/2007
9 out of 10 Realtors said their clients are most interested
in energy efficient feature and 90 of surveyed realtors agreed there would be
even more interest in green building a year from now.
Source: National Associations of Realtors / May 2008
Half of the 235,000 members of the National Association of
Home Builders (representing about 80% of
all homebuilders) said they would be employing some green building practices by
the end of the year. This is a 50%
increase from the 2004 survey.
Source: NAHB / May 2008
Green building will be the norm within the next 10
years. Already up to 40% of all
buildings are projected to have 3 of the 5 green criteria built into their
plans by next year.
Source: NAHB
Energy Forecasts
Natural gas demand in North America
is increasing at about 3% per year whereas supply is increasing at about
1%. Anticipated heating increase with
cold winters will be double digit costs to consumers.
Source: Energy Information Administration
The Midwest will experience
up to a 50% increase in the cost of heating in the winter of 2008.
Source: St. Paul
Pioneer Press quoting sources at Excel Energy / Spring 2008
Continued use of gas for electric generation will increase
both electric rates and heating rates.
Source: Energy Information Administration
As oil reserves rapidly dwindle and production capacity
slows it is anticipated that the source of raw materials will increase for home
construction despite a slowing home building market.
Source: Energy Information Administration
The world has less than 37 years of know oil reserves. Within ten to fifteen years the ability to
cheaply access this oil will greatly diminish, we must begin moving toward
renewable energy immediately to avert an energy crisis.
Source: U.S.
DOE
Cost Savings, Rebates, Credits
$1 spent on sustainable housing has an estimated ROI over
the life of a project of $20
Source: USGBC
According to a recent study, LEED buildings command rent
premiums of $11.24 per square foot over their non-LEED peers and have 3.8
percent higher occupancy. Rental rates in Energy Star buildings represent a
$2.38 per square foot premium over comparable non-Energy Star buildings and
have 3.6 percent higher occupancy and, in a trend that could signal greater attention
from institutional investors, Energy Star buildings are selling for an average
of $61 per square foot more than their peers, while LEED buildings command a
remarkable $171 more per square foot.
Source: GoStar Group,
2008
Most states do not increase a home value for tax purposes
with the addition of key energy saving measures. All state and the federal
government offer a variety of rebates and credits (Example: Arizona offers a 5%
income tax deduction, up to $5,000 if a residence is certified to be 50% more
energy efficient than the 1995 Model Energy Code. California
offers taxpayers an income tax deduction on any interest paid on loans used to
purchase energy-efficient products for a residence. Maryland
offers tax credits up to $120 per square foot for a building that is 35% more
efficient than current standards. Nevada created an
abatement credit /reduction of up to 50% of the property tax for 10 years for
building that follow the USGBC, LEED rating system).
Source: Alliance
to Save Energy
The use of Energy Star Appliances and materials saved the
country $14 billion last year (the equivalent of taking 25 million cars off the
road).
Source: U.S. Department
of Energy
An energy-efficient home can save a homeowner one third to
one half of a home’s energy cost.
Source: National Association of Realtors / 2008
The cost of water, city resources and energy will in the
very near future exceed the cost of a mortgage.
Energy costs will be the next big crisis for the mortgage industry.
Source: National Association of Realtors, USGBC 2007
The average cost of green construction is 5% or less of a
project and will have a payback of between 2 to 15 years. The average green construction project will
last twice the time of an average house.
Source: Minnesota
GreenStar / 2008
Facts
The selling price of a home increased by $20.73 for every $1
decrease in energy bills.
Source: The Appraisal
Journal
The world is no longer sustainable, another words it can no
longer generate the resource that are being depleted. It takes nature 10,000 years to create the
resources today’s population uses in one day.
Source: The Ecology of Commerce by Paul Hawkens
ü
31,500,000 tons of construction wastes are
produce annually in the US.
ü
25% of all wood consumed in the US is from virgin
timber.
ü
It is estimated that only 40 years of
sustainable forests remain in the world.
ü
Potable (drinking water) is the most wasted and
most precious of resources, water is being depleted from aquifers at a rate
faster than regeneration and most areas of the US have water supplies that range
from fewer than 3 months to less than 30 years.
ü
3,000,000,000 tons of raw materials are used in
construction in the US
each year.
ü
Buildings consume 76% of all the electricity
consumed in the US
each year.
ü
Carbon Dioxide lasts in the air about 100 years
from the time it is generated.
ü
Carbon Dioxide is currently estimated at 383
parts per million, up about 40 parts per million over the last two
decades. Some scientists believe that
somewhere between 440 to 550 parts per million animal life will not survive.
ü
The IPCC has determined that Global Warming is
real and that humans are a portion of the issue.
Source: USGBC,
NewWeek, David Johnston (Mother earth News), IPCC
Green construction is a construction project built to a
standard higher than building codes, they last longer are cheaper to operate,
sell for a premium, use fewer resources and have a lower impact on the
environment.
Source: Alliance for
Sustainability, Mike Holcomb / 2007
The five primary criteria for a green building are:
- Proper
site management and location
- Creating
water efficiency and using water wisely
- Creating
energy efficiency and using sustainable energy
- Efficient
and wise use of materials and creating durable structures
- Protecting
indoor air
Source: USGBC