TheMReport

July 2012

TheMReport — News and strategies for the evolving mortgage marketplace.

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THE PULSE Green Homes Get Growing Homebuilders and remodelers are reporting significant increases in environmental consciousness in their industry, and the widespread green trend continues to grow and blossom. T pears this new crop of construc- tion is not a seasonal trend but one that will continue to flour- ish in the years to come. Builders, remodelers, and he green home trend is growing roots and sprouting homes across the nation, and it ap- Green Gets a Remodel Green Market Share in 2011: Green Market Share Anticipated in 2013: homeowners are decreasing their environmental impact by focusing on energy efficiency, water effi- ciency, resource efficiency, indoor air quality, and environmental awareness in site planning. A recent industry survey reveals a majority of builders and remodelers are engaging in at least some green projects, and the number is continuing to grow. Additionally, among those who report working on some green projects, the proportion of green projects compared with traditional projects is increasing significantly. Not only is the incremen- {66% } The number of remodelers whose green projects made up 16 percent or less of their total projects. {34% } The number of remodelers whose green projects made up more than 16 percent of their total projects. {35% } The number of remodelers whose green projects will make up 16 percent or less of their total projects. {65% } The number of remodelers whose green projects will make up more than 16 percent of their total projects. Industry Interaction {83.7% expected to increase five- fold from 2011 to 2016. Green: The green sector of the single-family home construction industry is Construction Goes } percent of their customers are willing to pay more for a green home or remodel. saying they engage in at least some green projects. Both builders and remodelers report more than 60 Percentage of survey respondents Green Market Share Anticipated in 2016: {23% } The number of remodelers whose green projects will make up 16 percent or less of their total projects {77% tal cost of green building and remodeling declining, but also the industry is finding more than half of customers are willing to pay a premium for their environ- mental ideals. About the Survey: "The State of Green Building: Results from the MHC 2011/2012 Green Home Builders and Remodelers Survey" was released by McGraw Hill Construction in partnership with Waste Management and the National Association of Home Builders. The survey was also conducted in 2006 and 2008, but this year's is the first to include remodelers. Conducted in the fourth quarter of 2011, the survey compiled results from 416 respondents representing 23,500 builders and remodelers. For the purposes of the study, McGraw Hill defined "green building" as any building, remodeling, or land development that employs energy-efficient, water- efficient, or resource-efficient products or planning; includes improvements in indoor air quality; relies on "environmentally sensitive" site plans; or complies with national green standards such as LEED. $17 B Green market share in 2011 $87 B–$114 B {29–38% } Green market share anticipated for 2016 18 | THE M REPORT } The number of remodelers whose green projects will make up more than 16 percent of their total projects

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