Green Trends in the Building Market

Current trends indicate that demand is growing for environmentally-friendly products.

Research from trade organizations indicates a fast-growing trend toward green building, and investment practices also reflect growing interest in green sectors of the market. Consider these findings:

  • Venture capital investments in cleantech companies — such as those focused on developing alternative energy and recycling — grew to $2.2 billion in 2007, representing a 46% growth over 2006 and 7.5% of total venture capital investments in 2007. (The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture CapitalAssociation based on data from Thomson Financial, “2007 Venture Capital Investing Hits Six Year High at $29.4 Billion,” press release, National Venture Capital Association and PricewaterhouseCoopers, January 21, 2008)
  • Green building construction is projected to reach $60 billion by 2010.(“Green Building Facts: Green Building by the Numbers,” August 2008, based on information from the McGraw-Hill Construction Analytics SmartMarket Trends Report 2008, U.S. Green Building Council, www.usgbc.org)
  • The market for green building products and services was expected to exceed $12 billion in 2007.(“Green Building Facts: Green Building by the Numbers,” April 2007, U.S. Green Building Council, www.usgbc.org)
  • 51% of consumers are willing to pay $5,000 to $10,999 more for a home that saves $1,000/year in energy costs.(“Home Buyers Willing to Pay for Energy Efficiency,” BuilderOnline, February 14, 2008)
  • 90% of builders are currently participating in some green activity.(“Residential Green Building SmartMarket Report, 2006 Residential Green Building Issue,” McGraw-Hill Construction and the National Association of Home Builders)
  • 82% of AEC professionals will become “more active in green building in the next two or three years.”(“Green Buildings Research White Paper,” Building Design+Construction, October 2007)
  • 97% of the largest interior design firms are specifying green products.(“Top 100 Giants,” Interior Design, 2006)
  • The AIA and United States Conference of Mayors aim to reach 50% reduction in fossil fuel use by 2010 and carbon neutral buildings by 2030.(Ostroff, Tracy, “AIA Launches Green Building Tool Kit for Mayors,” AIArchitect, www.aia.org)
  • Some states are legislating green building practices and LEED® certification for certain building projects.(“Architects and Sustainable Design—Green Building Legislation in the States,” The American Institute of Architects, www.aia.org)