Who cares more about “Going Green”? The 2015 Smart Market Report, surveyed a total of 249 builders, remodelers, multifamily firms, and conducted nine in-depth interviews with homebuyers who purchased a home within the last year.
Nearly one-third (31%) of builders report that over 60% of home projects they've built this year featured green technology. By 2020, more than half , about 51% of builders project that they'll reach that same level of green work. The numbers are increasing as we are subject to seeing the documentaries about how the world is in great danger, and hear the news about global warming. People whom take this information to heart know that they can make a difference by investing in a greener home.
“Our studies demonstrate that home builders still think of green homes as an important trend,” said Dr. Donna Laquidara-Carr, industry insights research director at Dodge Data & Analytics, during a Wednesday presentation at the 2015 Greenbuild conference in Washington, D.C.
Remodelers and builders are driven by multiple factors to build greener homes, including customer demand (68%), energy cost increases (66%), green product availability and affordability (66%), greater valued recognized appraisers (66%), and code, ordinance, and regulation changes (65%). Green products can be more expensive, though understanding the impact of using green products will ease the pain of the costs.
The use of renewable technology has also grown over time. This year, 76% of surveyed builders report offering renewable energy on their projects, compared to 65% two years ago. By the year 2018, 85% of builders will offer renewable energy, such as wind or solar energy, on their products.
“The numbers that we have here are really striking,” said Dr. Laquidara-Carr. “We believe that builders are building greener because homeowners are gaining more knowledge, and there’s a greater consumer interest in these kinds of projects.”
The HERO program is one that is giving this type of Green knowledge, as they offer financing for eco-friendly projects and describe the positive impact that will come with them. In terms of potential buyers, more remodelers and builders believe that baby boomers, rather than millennials, are the most crucial customers in green home markets. This belief is echoed by builder and remodeler responses to how influential green home options are to home buyers by age: “Older buyers with previous home buying experience simply have more knowledge about homes, and therefore will value high-performance homes better,” explained Laquidara-Carr. “Millennials, however, have limited financial resources to invest in greener homes, and are also more motivated by convenience than home performance.”
With this being said, more funding and financing programs will come available and be able to offer the Millennials the chance to invest in their home with water and energy saving remodel.