by 2016, Says New McGraw-Hill Construction Study
According to a new study by McGraw Hill Construction, green homes comprised 17% of the overall residential construction market in 2011 and that share is expected to grow to between 29% and 38% of the market by 2016. Translate those figures to dollars, and the study predicts that green construction will move from $17 billion in 2011 to $87-$114 billion in 2016.
The study 2012 points to 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 of 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 study also revealed 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.
The McGraw Hill Construction study was released at the National Association of Home Builders 2012 International Builders Show.
Builders Group Launches Website to
Defend Mortgage Interest Deduction
The National Association of Home Builders (NAHB) has launched a consumer oriented website, www.SaveMyMortgageInterestDeduction.com, to provide up-to-date information about any potential congressional legislation that might eliminate the mortgage interest deduction.
"Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, but it could be eliminated or scaled back as Congress and the Administration are looking at tax increases in light of deficit concerns," said NAHB President Bob Jones, a home builder from Bloomfield Hills, Mich. "The consequences would be devastating for home owners, the housing market and the nation's economy."
The website promotes the advantages of retaining the mortgage interest deduction, and shows why this cornerstone of American housing policy is essential for millions of middle-class home owners and families that aspire to own their own home.
The site contains fact sheets, frequently asked questions, statistics, and other important info to allow consumers to stay informed as debate on the mortgage interest deduction moves forward. Most importantly, SaveMyMortgageInterestDeduction.com tells visitors how to remain engaged and make sure their opinions are heard on this important issue by connecting through NAHB's Facebook (www.Facebook.com/SaveMyMID) and Twitter (www.Twitter.com/SaveMyMID) communities, and their Eye on Housing blog (http://eyeonhousing.wordpress.com).
ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 175,000 members involved in the home building industry and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for 2010.
Quality Lighting in a Greener World
Recent 2010 Illuminating Engineering Society Annual
Conference focused on energy saving technologies
Standards, codes, legislation, new technology, case studies and site tours were on the agenda at the 2010 IES Annual Conference, entitled "Quality Lighting in a Greener World," held in Toronto, Ontario, November 7 - 9. The conference drew 525 attendees.
The Opening Session, entitled, "The Great Debate: The Banning of the Incandescent Bulb," pitted Kaj den Das of Philips Lighting against Phil Gabriel of Gabriel Mackinnon. Mackinnon framed the opposition to the incandescent ban in both political and quality of light terms, while den Das framed the pro-ban of the incandescent around economic arguments. ven Das noted that lighting currently accounts for 19 percent of all electricity used. At recent consumer survey shows that 77 percent of consumers are unaware of the impending ban.
Two other General Sessions continued with the "green" theme of the conference: one about global climate trends and the urgent need to adopt codes and standards to reduce the use of fossil-fuel based energy in buildings, and the other, a presentation about standards that provide guidance on creating sustainable built environments.
A robust discussion ensued during the CEO Roundtable over the speed of the domestic market transition to LEDs. Designers in the audience raised reservations about adoption of new products utilizing new technologies (e.g., LEDs), preferring to specify products that were tested and reliable.
Conference sponsors included Acuity Brands Lighting, BetaLED, Cooper Lighting, Philips Lighting, Philips Day-Brite, Philips Lumec, GE Lighting Solutions, Lutron and OSRAM Sylvania. The 2011 conference is slated for October 30 through November 1, 2011 at the Hilton Austin Hotel in Austin, TX.
IES is the oldest and largest educational and scientific society in North America devoted to lighting. Since 1906, the IES has sought to improve the lighted environment through a broad variety of programs, including publications, conferences and seminars. For more information about IES, go to www.ies.org.
New National Standard for Life Cycle Assessment
Aims to Settle Long-Standing Green Building Debates
Standard Has Implications for LEED & Forest Stewardship Council Programs
A new draft of the National Standard for Life Cycle Assessment (LCA) aims to address key issues facing the green building industry. The standard, which will be voted upon in February 2011, is being used to address pressing concerns: which wood certification program supports the better environmental outcome and whether LEED certified buildings actually result in improved environmental performance.
The National Standard Committee will hold a public meeting to discuss the draft National Standard for Type III Life-Cycle Impact Profile Declarations for Products, Services and Systems in Chicago preceding the Greenbuild 2010 conference and expo in Chicago. The draft Standard is currently being used in a study that compares the ecological impacts of Forest Stewardship Council (FSC) and Sustainable Forests Initiative (SFI) wood certifications. These two programs are at the center of a contentious debate over which should be adopted by the U.S. Green Building Council (USGBC) to award LEED credits.
The meeting will also discuss initial results of a study that examines the environmental performance of a LEED certified building. The USGBC currently faces a class action lawsuit that alleges that it misrepresents energy performance of buildings certified under its LEED rating systems.
This committee meeting is part of the American National Standards Institute (ANSI)* process for creating an open, balanced and transparent national standard. Both of the topics highlighted above are on the agenda.
* The American National Standards Institute (ANSI) A 501(c)3 private, not-for-profit organization that oversees the creation, promulgation and use of thousands of norms and guidelines that directly impact businesses in nearly every sector.
Federal Court Issues
Chinese Drywall Ruling
The first U.S. court ruling over damages caused by defective Chinese-made drywall was handed down in April 2011, as a federal judge in New Orleans ordered a Chinese manufacturer to pay seven Virginia families a total of $2.6 million for damages to their homes attributed to drywall. The decision is certain to impact pending lawsuits filed by thousands of homeowners across the nation whose residences were damaged by leeching sulfur from inferior-grade drywall imported from China.
The Chinese drywall – used as a cheap alternative to American-made products – has been linked to a host of problems by homeowners around the country, including corroded electrical wiring, appliance outages, rotting walls and personal belongings, as well as ill health caused by the acrid sulfur fumes. Many of the damaged homes are in the Gulf region, where builders used the cheaper Chinese drywall to construct new homes following Hurricane Katrina and other storms.
The plaintiff families were represented by the Seeger Weiss law firm.
EPA Sets Out to Repair Its
Battered Energy Star Label
It wasn't good news for the ENERGY STAR program when it was revealed the agency had been “punk'd” by the Government Accounting Office. The GAO had submitted a ludicrous array of phony products – such as a gasoline powered alarm clock – that won ENERGY STAR approval. In addition, four GAO-created faux companies were awarded ENERGY STAR partner status.
Ouch!
In response, the EPA and the Department of Energy jointly announced a series of steps to restore ENERGY STAR's credibility. The DOE has begun testing approximately 200 models of refrigerator/freezers, clothes washers, dishwashers, water heaters and room air conditioners through third-party, independent test laboratories. In the future, manufacturers applying for the ENERGY STAR label must submit their products for testing from independent labs, and must then submit those approved products to ongoing verification tests to demonstrate continued compliance.
The EPA and DOE also revealed a series of actions taken in recent months to ensure compliance with both ENERGY STAR and DOE's efficiency standards, including action against 35 manufacturers in the past four months. When a violation is found, the right to use the ENERGY STAR label is revoked, corrective measures are required, and the ENERGY STAR partnership may be terminated. In 2008 under DOE pressure, LG Electronics agreed to pay back consumers for promised energy savings and provide free, in-home upgrades to improve several models of their refrigerators.
“Consumers have long trusted the Energy Star brand for products that will save them energy and save them money,” said Cathy Zoi, DOE Assistant Secretary for Energy Efficiency and Renewable Energy. “The steps we're taking now will further strengthen and improve the program, building on the results that consumers have come to expect.”
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