'Green' Homeowners Are Happier With Their Homes and Recommending Them; Cost Savings Are Top Motivating Factor for Buying Green

McGraw-Hill Construction releases first research of green homeowners at the

National Association of Home Builders' Green Building Conference

Mar 26, 2007, 01:00 ET from McGraw-Hill Construction

    NEW YORK, March 26 /PRNewswire/ -- McGraw-Hill Construction, part of
 The McGraw-Hill Companies (NYSE:   MHP), today will present the findings of
 its latest market research investigating "green" homes, focusing on
 homeowners and home buyers. The survey, co-sponsored by the National
 Association of Home Builders (NAHB), finds that homeowners are happier with
 their new green homes than with their previous homes, and that they are
 eager to recommend buying green to others
     (Photo: http://www.newscom.com/cgi-bin/prnh/20070326/NYM093 )
     The research provides the first estimate of the true size of the green
 home market, screening out green homeowners from a representative panel of
 U.S. homeowners. According to this new study, 0.3% of all homes in the U.S.
 are truly green (containing elements in three of five environmental
 building categories), a market sized at approximately $2 billion.
     "Though it's still a small number, builders are already getting it when
 it comes to the value of real green homes, and it appears homeowners are
 too," states Harvey M. Bernstein, McGraw-Hill Construction vice president
 of Industry Analytics, Alliances and Strategic Initiatives. Pointing to
 McGraw- Hill Construction's estimate from 2006 that that 2% of the
 residential construction market had at least one green building element,
 such as energy- efficient appliances, Bernstein adds, "It's also powerful
 to find that people are really starting to commit to building truly green
 homes, moving away from just adding energy efficient appliances or one
 aspect that's green. They're paying attention to the holistic benefit of
     Homeowners are extremely happy with their green homes, with 85% happier
 with their new green homes versus their previous non-green ones. And
 they're not shy about sharing those feelings. This finding is powerful
 because 28% of the homeowners reported first hearing about green homes
 through word of mouth.
     "We're excited that green homeowners are so happy with their homes and
 that they're willing to share the good news," says Ray Tonjes, chairman of
 the NAHB Green Building Subcommittee and an Austin, Texas, green home
 builder. "NAHB and its members have been leaders in the voluntary movement
 to increase the energy and resource efficiency and quality of homes, and it
 is great news that these consumers are so satisfied with their
 high-performing homes. Green building's market share will continue to
     The research also found that:
     -- The new green homeowner is affluent and well educated, in his/her mid
        forties and married, and also more likely to be from the Southern or
        Western states.  Women are also more likely to be green homeowners.
     -- Home operating costs matter.  Sixty-three percent report lower
        operating and maintenance costs as the key motivation behind buying a
        green home. Additionally, nearly 50% report environmental concerns and
        family health as motivators.
     -- Lack of awareness, higher costs, and scarcity lead obstacles.  The top
        three obstacles, all hovering over 60% of respondents, were oriented
        around education, additional costs involved in green homes and the
        availability of the homes.  However, when looking at the "biggest"
        obstacles, green homeowners view education as the biggest hurdle to
     Another interesting finding is the high prevalence of green products
 being implemented during home remodeling. Approximately half the overall
 U.S. homeowner population has recently done some renovation work on their
 home, and approximately 40% of that population is doing so with green
 products. "This is another powerful finding," says Bernstein. "As home
 prices increase and homeowners stay in their homes longer, remodeling
 becomes a key market opportunity. It's encouraging that there is already so
 much of the community aware of these green product options and, more
 importantly, using them."
     The results presented at the Green Building Conference today will be
 incorporated into another issue of the McGraw-Hill Construction SmartMarket
 Report series, available early summer at
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 $4.6 trillion global construction community. For more information, visit
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SOURCE McGraw-Hill Construction