The U.S. green building market continues to accelerate, according to McGraw-Hill Construction’s recently released “2013 Dodge Construction Green Outlook” report. The value of green building has seen growth from $10 billion in 2005 to $78 billion in 2011.
In 2012, the total market — non-residential and residential — is expected to be worth $85 billion, and by 2013, overall new green building is projected to rise to between $98 billion and $106 billion. By 2016, this number is expected to reach $204 billion to $248 billion, according to McGraw-Hill Construction, which is also the owner and publisher of ENR Mountain States.
According to the report, green building remains a bright spot in a still uncertain economy. Green is expected to represent 44% of all commercial and institutional construction in 2012, growing up to 55% by 2016. Residential green construction is also on the rise. It is expected that by the end of 2012, green homes will comprise 20% of the market, and in 2013 a 22-25% share by value is expected, equating to a $34-$38 billion opportunity. By 2016, this share by value is expected to increase to 29-38% - an estimated $89-$116 billion- based on the current single-family residential construction forecast.
To break it down further, while education construction is down, green has remained a stronghold at 45%. The office market has the largest share of green with 54% in 2012, a bright spot considering the overall expected growth of the sector in the near term. “We’re seeing tremendous growth in green building, providing a bright light in an otherwise uncertain economy,” said Harvey M. Bernstein, vice president, Industry Insights and Alliances for McGraw-Hill Construction.
“Not only does this mean a strong outlook for green building, but also the benefits that go along with that: more jobs, greater financial benefits from green and high-performance buildings, stronger competitive positioning for those firms that build green, and healthier work and learning environments for our population.”
Other key points found in the study include:
• Health-related green building labels are taking force in construction specifications, growing more rapidly than any other aspect of green.
• One third of all homebuilders in the U.S. expect to be fully dedicated to building green by 2016.
• Green construction jobs are following the green building market; 35% have green jobs today.
• 81% of executive leaders in corporate America believe the public expects them to engage in sustainability—one of the key forces driving corporations to institutionalize some green efforts. 30% of senior executive officers report that they are greening two-thirds of the buildings in their portfolio, with 47% expecting to do so by 2015.
A green building is defined as one built to LEED or an equivalent standard, or one that is energy- and water-efficient that also addresses improved indoor environmental quality and/or resource efficiency.