Despite a subdued outlook for new home sales across the U.S., some builders are finding ways to improve their visibility in the local marketplace. It’s all about being green. More builders are using the green angle in their marketing for both new builds and renovations. This trend is expected to continue through at least 2016.
Last year, about 11% of newly-built homes were considered green and had a market value of $17 billion. By 2016, the green new homes will comprise between 29%-38% of the market and have a value ranging from $87-$114 billion.
And because of the ongoing slump in the home market, builders are also turning their talents to green remodeling. By 2016, green projects will account for 34% of remodeling. Builders are finding that marketing green is making a difference for the bottom line. Nearly half of operators involved in new construction or remodeling say that ‘building green’ is a competitive advantage. Some contractors have committed to build only green. In those cases, 71% say this marketing strategy has improved their business prospects.
Consumers who are looking for green homes are not necessarily the typical green consumers. When it comes to housing, the top green factors are improved building quality and reduced energy costs. In addition, builders are reminding consumers that the green differential isn’t as high as it once was. Currently, the ‘cost to go green’ is about 7% more than traditional construction. With real estate market gains expected to be modest in the next year, look for more builders to promote themselves as green experts.[Source: Green remodeling is growing. McGraw-Hill Construction. 9 Feb. 2012. Web. 22 Feb. 2012]