The U.S. green building market continues to accelerate, according to McGraw-Hill Construction’s 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 the report, Green building remains a bright spot in a still uncertain economy. Green is expected to represent 44 percent of all commercial and institutional construction in 2012, growing up to 55 percent by 2016. Residential green construction is also on the rise. It is expected that by the end of 2012, green homes will comprise 20 percent of the market, and in 2013 a 22-25 percent 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 percent – 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 percent, continuing to be the largest opportunity for green building. The office market has the largest share of green with 54 percent 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, according to Dodge SpecShare (http://construction.com/dodge/dodge-business-intelligence-specshare.asp).
- One third of all home builders in the U.S. expect to be fully dedicated to building green by 2016.
- Green construction jobs are following the green building market; 35 percent have green jobs today.
- 81 percent 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 percent of senior executive officers report that they are greening two-thirds of the buildings in their portfolio – with 47 percent 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.
The 2013 Dodge Construction Green Outlook is produced by a staff of researchers, economists and analysts, drawing from its Dodge project database, its construction market forecasts, proprietary market research, and secondary research, as well as extensive data and trend analysis.
In addition to the sizing numbers by sector, the 2013 Dodge Construction Green Outlook also covers the benefits of green building investments, construction industry players and green jobs, key green building trends, green building products, and benefits of green and high performance investments. To order a copy of the report, visit construction.com/market_research.