What Do Home Owners Seek in a Green Home?

• Operational cost savings: 90%
• Social benefits of protecting the environment: 84%
• Improved occupant health: 82%
• Potential for higher resale value: 73%

Source McGraw-Hill & National Association of Home Builders Survey / April 2007

Three fourth of homeowners in a national survey said that energy-efficient features would influence their buying decisions in a home purchase.  51% said they would pay $5,000 to $11,000 more if it reduce their utility bills, 16% said they would pay more than $11,000 for a green home.
Source: HAHB / 2008

10% of all new homes will be built green by the end of 2010. Buyers are seeking sustainable lifestyles.
Source: Calvert Group and the Boston college Institute for Responsible Investment / 2008


Size and Purchasing Power of LOHAS Segment (Lifestyles of Health and Sustainability Segment)

$200 billion in purchasing power, 90 million people (40% of the US population)
Source: Residential Green Building Report 5/07

40% of all home remodeling is being done green, over $69 billion in 2007
Source McGraw-Hill, NAHB


Broad Consumer Studies

37% of consumers feel highly concerned about the environment, 25% feel knowledgeable, and 22% feel they can make a difference when it comes to the environment.
Source: Yankelovich 2007

By 2010 new, green, homes are expected to generate $60 billion in sales.
Source: USGBC / 2008

 

“Green home building is not a fad, but a trend, and one that is increasing at rapid rates”
Harvey Bernstein, VP, Industry Analytics & Alliances, McGraw-Hill Construction

Home Depot and Lowes have introduced extensive lines of green products that range from low VOC paints to recycled counter top materials.  Consumers are demanding green product for their home improvement projects.
Source: Business Week / June 2008

In a national survey for the homebuilders industry: If national builders wish to continue as market leaders they must quickly embrace the opportunity to build and sell green buildings or they will lose out on a trend that is the future.
Source: Calvert Group / March 2008

30% of homeowners remodel within the first 2 years of owning a home, 70% within 5 years, up to 30% make a home improvement within 6 months of buying a home. 40% of all remodeling is considered green.
Source: Minnesota GreenStar / USGBC

Almost 40% of Americans who recently renovated their dwelling did so with at least some green products.
Source: NAHB / 2008

A study by the AIA shows that consumers are quickly moving toward sustainable products, water saving products and energy saving products.  
Source: AIA / June 2008

For the first time builders with green projects have surpassed those builders with less than 15% green projects.  Estimated growth in green building is anticipated to be up to 60% of all building projects for “green builders” next year.  
Source: NAHB / May 2008

A study by the AIA indicates that homeowner’s priorities when selecting housing designs are focused on energy conservation first.
Source: AIA / Second quarter 2007

U.S. demand for advance high efficiency lighting will grow 14% through 2010 (CFL, and LED technology).  This drive is an early indicator of consumers seeking energy management solutions for residential and commercial buildings.
Source: Freedonia Group 6/2007

9 out of 10 Realtors said their clients are most interested in energy efficient feature and 90 of surveyed realtors agreed there would be even more interest in green building a year from now.
Source: National Associations of Realtors / May 2008

Half of the 235,000 members of the National Association of Home Builders  (representing about 80% of all homebuilders) said they would be employing some green building practices by the end of the year.  This is a 50% increase from the 2004 survey.
Source: NAHB / May 2008

Green building will be the norm within the next 10 years.  Already up to 40% of all buildings are projected to have 3 of the 5 green criteria built into their plans by next year.
Source: NAHB

Energy Forecasts

Natural gas demand in North America is increasing at about 3% per year whereas supply is increasing at about 1%.  Anticipated heating increase with cold winters will be double digit costs to consumers.
Source: Energy Information Administration

The Midwest will experience up to a 50% increase in the cost of heating in the winter of 2008.
Source: St. Paul Pioneer Press quoting sources at Excel Energy / Spring 2008

Continued use of gas for electric generation will increase both electric rates and heating rates.
Source: Energy Information Administration

As oil reserves rapidly dwindle and production capacity slows it is anticipated that the source of raw materials will increase for home construction despite a slowing home building market.
Source: Energy Information Administration

The world has less than 37 years of know oil reserves.  Within ten to fifteen years the ability to cheaply access this oil will greatly diminish, we must begin moving toward renewable energy immediately to avert an energy crisis.
Source: U.S. DOE


Cost Savings, Rebates, Credits

$1 spent on sustainable housing has an estimated ROI over the life of a project of $20
Source: USGBC


According to a recent study, LEED buildings command rent premiums of $11.24 per square foot over their non-LEED peers and have 3.8 percent higher occupancy. Rental rates in Energy Star buildings represent a $2.38 per square foot premium over comparable non-Energy Star buildings and have 3.6 percent higher occupancy and, in a trend that could signal greater attention from institutional investors, Energy Star buildings are selling for an average of $61 per square foot more than their peers, while LEED buildings command a remarkable $171 more per square foot.
Source: GoStar Group, 2008


Most states do not increase a home value for tax purposes with the addition of key energy saving measures. All state and the federal government offer a variety of rebates and credits (Example: Arizona offers a 5% income tax deduction, up to $5,000 if a residence is certified to be 50% more energy efficient than the 1995 Model Energy Code.  California offers taxpayers an income tax deduction on any interest paid on loans used to purchase energy-efficient products for a residence.  Maryland offers tax credits up to $120 per square foot for a building that is 35% more efficient than current standards.  Nevada created an abatement credit /reduction of up to 50% of the property tax for 10 years for building that follow the USGBC, LEED rating system).
Source: Alliance to Save Energy

The use of Energy Star Appliances and materials saved the country $14 billion last year (the equivalent of taking 25 million cars off the road).
Source: U.S. Department of Energy

An energy-efficient home can save a homeowner one third to one half of a home’s energy cost.
Source: National Association of Realtors / 2008

The cost of water, city resources and energy will in the very near future exceed the cost of a mortgage.  Energy costs will be the next big crisis for the mortgage industry.
Source: National Association of Realtors, USGBC 2007

The average cost of green construction is 5% or less of a project and will have a payback of between 2 to 15 years.  The average green construction project will last twice the time of an average house.
Source: Minnesota GreenStar / 2008

Facts

The selling price of a home increased by $20.73 for every $1 decrease in energy bills.
Source: The Appraisal Journal

The world is no longer sustainable, another words it can no longer generate the resource that are being depleted.  It takes nature 10,000 years to create the resources today’s population uses in one day.
Source: The Ecology of Commerce by Paul Hawkens

31,500,000 tons of construction wastes are produce annually in the US.
25% of all wood consumed in the US is from virgin timber.
It is estimated that only 40 years of sustainable forests remain in the world.
Potable (drinking water) is the most wasted and most precious of resources, water is being depleted from aquifers at a rate faster than regeneration and most areas of the US have water supplies that range from fewer than 3 months to less than 30 years.
3,000,000,000 tons of raw materials are used in construction in the US each year.
Buildings consume 76% of all the electricity consumed in the US each year.
Carbon Dioxide lasts in the air about 100 years from the time it is generated.
Carbon Dioxide is currently estimated at 383 parts per million, up about 40 parts per million over the last two decades.  Some scientists believe that somewhere between 440 to 550 parts per million animal life will not survive.
The IPCC has determined that Global Warming is real and that humans are a portion of the issue.
Source: USGBC, NewWeek, David Johnston (Mother earth News), IPCC

Green construction is a construction project built to a standard higher than building codes, they last longer are cheaper to operate, sell for a premium, use fewer resources and have a lower impact on the environment.
Source: Alliance for Sustainability, Mike Holcomb / 2007

The five primary criteria for a green building are:

1. Proper site management and location
2. Creating water efficiency and using water wisely
3. Creating energy efficiency and using sustainable energy
4. Efficient and wise use of materials and creating durable structures
5. Protecting indoor air

Source: USGBC