Study: Green Home Building on the Rise

Filed in Multifamily, Sustainability and Green Building by on September 27, 2017 0 Comments

Green construction is rapidly gaining traction among both single-family and multifamily home builders, according to new research published in the Green Multifamily and Single Family Homes 2017 SmartMarket Brief.

The latest in a series of studies conducted by Dodge Data & Analytics in partnership with NAHB, the study shows that green homes are continuing to gain market share.

At least one-third of surveyed single-family and multifamily builders said that green building is a significant portion of their overall activity (more than 60 percent of their portfolio). By 2022, this number should increase to nearly one-half in both sectors.

Within this group, nearly 30 percent of multifamily builders fall into the category of “dedicated” green builders (more than 90 percent of their portfolio). On the single-family side, the percentage of “dedicated” green builders is nearly 20 percent, but that share is expected to grow sizably by 2022.

Increasing energy efficiency continues to be the most common method of improving the performance of a green home, followed by creating a healthy indoor living environment.

The report also found that a considerable number of builders are developing net zero homes or plan to build net zero homes in the near future. Among those surveyed, 29 percent of single-family home builders have built a net zero, near-net zero, or net zero-ready home in the past two years, and 44 percent expect to do so in the next two years. Builders see increased customer demand and a competitive advantage as the top two drivers to develop net zero homes.

Other findings suggest the single-family green home market is maturing. For one, the report found that home builders are less concerned about higher start-up costs than in previous studies. There was also a decline among people who think consumers will not pay additional costs for green building.

Multifamily builders see government or utility incentives; customer demand; and changes in codes, ordinances, and regulations as the top drivers for future green building activity. As for obstacles, multifamily builders are most concerned about the costs associated with green, higher start-up costs and the unwillingness of consumers to pay more for green construction. Single-family builders said the challenge of consumers not being willing to pay more for green is the top obstacle for them.

For more information about NAHB’s sustainable building activities, visit

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