Home Buyers Increasingly Thinking and Buying Green, Survey Reports

A recent survey conducted by the U.S. Green Building Council (USGBC) and McGraw-Hill Construction revealed that home buyers at all income levels are looking for green elements in their home purchases.

Families and individual homeowners with the lowest incomes are overwhelmingly satisfied with their green homes, are more likely to recommend a green home to family and friends, and strongly prefer green homes as a purchasing option, according to the study. The survey found that 78 percent of homeowners earning less than $50,000 per year say they would be more inclined to purchase a green home.

The survey estimated that within the last three years more than 330,000 market rate homes with green features have been built in the United States, representing a $36 billion per year industry. An estimated 60,000 of those homes were third-party certified through LEED or a local green building program.

"We're crossing the tipping point for green home building," says Harvey M. Bernstein, McGraw-Hill Construction vice president of Industry Analytics, Alliances and Strategic Initiatives. "Concerns about energy costs, health and even resale value are adding up green for builders, buyers and renters. Green homes are here to stay."

McGraw-Hill Construction surveyed a representative sample of one million U.S. households (equating to three million consumers) to find those individuals who had purchased LEED-certified and other green homes over the last three years. Eighty-three percent said their new homes will lower operating costs; lower energy bills within the first year after purchase (79 percent); and also lower water bills within the first year after purchase (68 percent).

Going green was the top reason cited by survey respondents for remodeling their homes. Environmental benefits, such as lower energy costs and healthier air, were identified by 42 percent of respondents as their main reason for home improvements; 34 percent cited increased comfort; only 24 percent said improved appearance was their main benefit from remodeling.

Other key findings of the McGraw-Hill Construction survey include:

• 70 percent of buyers are either more or much more inclined to purchase a green home over a conventional home in down housing market.
• More than half (56 percent) of those surveyed who have bought green homes earn less than $75,000 per year; 29 percent earn less than $50,000.
• Overall, lower income buyers say they found tax credits and government programs, indoor air quality benefits and green certifications to be the most important incentives for them to buy green homes.
• Making homes greener is now the number one reason for home improvement (42 percent) over remodeling for comfort reasons (34 percent) or to improve appearance (24 percent).
• Almost half (44 percent) of homes renovated between 2005 and 2007 used products chosen for their green attributes.
  

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