UNITED STATES (RCLCO) – Green home building is on the rise, and most buyers are willing to pay more for it.
According to RCLCO, about 17 percent of single family homes built in 2011 were labeled “green,” compared with just 8 percent in 2008. McGraw-Hill Construction expects the green market share to reach between 29 and 38 percent by 2016.
When comparing RCLCO survey results from 2007 versus 2012, the biggest driver of buying a so-called green home, in both surveys, was anticipated cost savings and/or health benefits. However, fewer today are willing to pay extra for green construction for any reason: just 80 percent of buyers in 2012, compared with 95 percent in 2007.
Buyers aged 18 to 34 and those in the West are more likely to go green on their home purchase. They are also more willing to pay extra for the sake of environmental responsibility. Overall, though, those buyers considering environmental responsibility as their primary motivation for going green represent just 6.1 percent of buyers.
RCLCO recommends that builders highlight features and building practices that save buyers money and promote their health, as well as focusing on green upgrades that pay back additional costs within a reasonable time.