Market for Green Homes Expected to Boom

New York City, October 22, 2007--A new report by McGraw-Hill Construction and the National Association of Home Builders shows that the market for “green” homes is rising as consumers become aware of the issues and options available.

The market for green homes is expected to rise from $2 billion this year to $20 billion over the next five years, according to the report. It said homeowners are using green products for 40% of their remodeling work and they tend to find out about green homes through word of mouth, the television and Internet. The biggest reasons for going green were for the health of their families and to save money on energy and other operating costs.

"Our findings are particularly powerful because they point to the reasons behind the market trends we're seeing of the increasing number of green homes," said Harvey M. Bernstein, vice president of industry analytics, alliances and strategic initiatives for McGraw-Hill Construction.

"People are spreading the word about their green homes, which is most effective because that's how buyers are hearing about the opportunities of green. It's a cycle that is bearing out in the marketplace."

McGraw-Hill Construction found in prior studies that residential builders and the commercial industry believed that the additional costs of green were by far the most significant challenge to more rapid growth in green building. But for homeowners, today's survey shows that while costs and the availability of green homes are still an obstacle, the most important issue is lack of awareness.

"This information gap is actually a great opportunity for the industry, as well as for the media, nongovernmental organizations and government itself to provide more effective communication of the advantages of green homes," added Bernstein.