Green Homes on the Rise

Real Estate Trends To Watch For

A growing percentage of home builders say they are currently building green homes and expect to build more in the future. A study, conducted in partnership with the National Association of Home Builders, surveyed 232 builders and remodelers and found that 54 percent of home builders are currently constructing at least 16 percent of their new homes green and over half expect to be doing 60 percent or more of their homes by 2020.

Tom Woods, NAHB’s chairman, says there’s a growing demand for green homes. “Builders and remodelers have long recognized that green is the future of home building,” Woods said. “Since we first began partnering on this study, we’ve seen that commitment grow. The study’s recent findings reinforce this continued growth, with new homeowner feedback showing a desire and expectation that new homes be high-performing, particularly when it comes to energy conservation.” In addition to the money that can be saved through energy efficiency, builders believe home buyers associate green homes with healthier living and will pay more for homes that are healthier.

Another factor leading to growth in the residential market is the increasing use of renewable energy. The study demonstrates that the use of renewable technologies is expected to grow across the board, revealing an interest in energy performance that goes beyond green.

One interesting finding of the new study is that the greatest impetus for green homes comes, not from millennials  as many people might expect, but from consumers age 55 and older. Data from the study suggest that greater familiarity with home features leads to an emphasis on home performance. Therefore it is quite possible that there could be even greater demand for green in the future as the younger generation graduates into home ownership.