Consumers Care About Health and the Environment: Green Homes is a Solid Market Trend.

In my last post I covered some of the basic green home market data from McGraw Hill Construction. One of the key points is that the data is all grouped together. In order to be able to extract any information suitable to influence strategic decisions, it must be segmented by factors like price range, geographical region, green features, etc. I think we are going to have to wait a while to obtain data with that type of granularity, but we can still use the information to help shape our general business direction. One thing is for sure, no matter how you slice it, the market outlook for green real estate going forward looks very promising.

In this Part II I am going to list some of the more consumer related information supporting the green home market.

• When asked to list their top 12 influences in buying a home, consumers responding to a National Association of Home Builders survey last year put energy efficiency at No. 2 , behind quality of living space. Five years ago, energy didn't even make the same survey. (The Huntington Post, February 2009)

• According to the National Association of the Remodeling Industry survey, 46 percent of American homeowners claim they would be eager to incorporate green principles into their homes, especially if it would save them money. Experts estimate one can generally save 20 to 30 percent on energy costs with $4,000 to $8,000 worth of improvements.

• Americans Ready to Spend More Green on the Home 48 percent of homeowners would spend $2,500 or more on greening up a home for resale according to the Better Homes and Gardens Real Estate “Living Green” Consumer Survey. The findings are the result of the Better Homes and Gardens Real Estate Living Green Consumer Survey. (Lawn & Landscape Magazine, Nov. 7, 2008)

• A recent survey by the National Association of Realtors found that nine out of ten realtors said their clients were interested in energy-efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now. (St. Charles Journal, September, 2008)

• According to a 2007 National Association of Home Builders survey, 63 percent of buyers are motivated by the lower operating and maintenance costs that come with energy and resource-efficient homes. (Environment News Service March 2007)

• According to the National Association of Home Builders, when 800 registered voters were given a list of motives for either purchasing a new green home or remodeling their current home to make it greener, nearly two-thirds (64%) identified “reduced energy costs” as an important factor, followed by “because it would be healthier,” and it’s “the right thing to do for the environment.” (www.nbnnews.com, Nov. 2007)

Back to the economic picture, here is one piece of information supporting the increased value of green homes compared to other homes that are not green:

• While the average U.S. home lost 5.7% of its value in 2007, eco-friendly homes have held their value, even appreciating in price. Come sale time, a green property typically appraises for 10% to 15% higher than comparable conventional homes according to Jim Amorin, vice president for the Appraisal Institute, a professional trade organization. (Smart Money, January 2008)

Again, the data is scattered all around from different sources and at different times. I am hoping to update my information sometime soon. I'll post another blog of the finding when it's done.

Here in Boulder Colorado and also in the Denver Metro region there is a growing sentiment toward green homes. I believe we are going to start to see similar trends in other parts of the country in the near future.

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