Green Building Market in U.S. Grows 50% in 2010
2010 U.S. Green Building market rises to $71 billion and represents 25% of all new construction
According to "Green Outlook 2011: Green Trends Driving Growth," a recent report by McGraw-Hill Construction, growth in the green building market has been accelerating in spite of the current recession. The value of green building construction projects begun in 2010 was 50% higher than in 2008, rising from $42 billion to $55-$71 billion, representing 25% of all new construction. The report projects that the green building market will continue to expand, reaching $135 billion by 2015.
The green building market share in non-residential construction is even larger. Fully one third of new nonresidential construction projects ($54 billion) begun recently were green, and the numbers are even higher in certain sectors. Green building is expected to account for up to 40% of health care construction this year ($8 billion-$9 billion), and large shares of the education (valued at $13 billion–$16 billion in 2010) and office building (valued at $7 billion–$8 billion in 2010) construction markets have also gone green. LEED certification has been mentioned in 71% of all 2010 green building projects valued at over $50 million. Nonresidential green building is expected to triple in five years, reaching $120-$145 billion in new construction (40%-48% of the non-residential market) and $14-$18 billion in non-residential retrofit and renovation projects.
"It's an amazing area of opportunity at time when the construction market is extremely challenged," said Harvey M. Bernstein, vice president, Global Thought Leadership and Business Development, McGraw-Hill Construction. "In today's economy, firms that specialize in green or serve this market are seeing a tremendous advantage — and they're doing good at the same time.
Building owners surveyed for the report mainly cited business benefits as the factors that pushed them to build green. Green building reduced operating costs by 13.6% on average for new buildings, increased new building values by an average of 10.9%, and increased the return on investment by 9.9% on average for new buildings and 19.2% for retrofits. Other causes for the expansion of the green building market included an increase in the number of green building initiatives and regulations, an increase in public awareness of the benefits of building green, and building owners’ desires to distinguish their buildings from others in the market.