The Green Building Industry: How The Construction Industry Can Benefit from This Growing Market
In late April, President Biden announced his decision to rejoin the Paris climate agreement in addition to cutting the U.S.’s carbon emissions by 50-52 percent of its 2005 levels by 2030, nearly doubling President Obama’s commitment from 2015.
What does this mean for changes in the construction industry? Better yet, how can green construction incentives help your business?
More Jobs on the Horizon
As sustainability experts have suggested, eco-friendly legislation can drive business without restraining markets. Biden’s plan promises infrastructure projects that boast good news for the construction industry: creating millions of jobs for skilled tradespeople, construction workers, and engineers.
With plans on investing $2 trillion into infrastructure, housing, building construction, and other projects, this initiative provides many opportunities for the construction industry.
Green Building Market Growth
The construction industry’s shift to greener buildings is inevitable as more and more buildings pave the way to lower carbon emissions (building operations have shown to cause 28% of all U.S. carbon emissions).
The green building market is anticipated to be among the fastest-growing industries worldwide. The number of Leadership in Energy and Environmental Design (LEED)-certified projects in the U.S. rose from 296 certifications in 2006 to over 67,200 in 2018.
Happy Homeowners
Studies have also shown that green homeowners are more satisfied and believe that green homes are higher quality, easier to maintain, more efficient, and offer health benefits than non-green homes.
Research has also shown that home buyers are willing to pay for these benefits when purchasing their homes. This significant value-adding benefit that your business can offer will set you apart from other builders.
Incentives
Sustainable building techniques cost 1-2% more, on average, compared to similar, traditional projects. To offset these green building upgrades and fees, incentives such as the Federal Energy Efficient Builder Tax Credit are available.
Cost-Effective
Although that 1-2% cost increase is taken into account when implementing those sustainable building techniques, a large number of green building practices result in using fewer materials and generating less waste, so your business’ costs are minimized and even offset.
When green practices are incorporated as standard building practices, your business can take advantage of volume discount savings and reduced labor costs, while integrating the learning curve to implement and install different items.
Entitlement Process Benefits
Some green builders benefit from fast-track permits and reduced permit fees in their jurisdictions, while others find that they have access to land that they wouldn’t have access to otherwise.
Increase in Credibility
As any seasoned builder would know, increased credibility is never a bad thing for your business.
A certified green home demonstrates to the buyer and to the community your unwavering commitment to the environment, homeowner, and the community.
The third-party certification process means that it’s not just your word standing behind your product, but you have the support and credibility of a national program as well.
To learn more about green building certification, visit or contact your regional HBA or visit the US Green Building Council website.
Green Changes In The Future
In the US, LEED registrations have been increasing impressively, reaching 69,006 registrations in 2019.
The need to adjust with commercial and residential trends in the green building market is reshaping the way builders do business in the construction industry.
By focusing on utilizing sustainable building practices while supporting strategic planning within a project’s specific demands, your business will be prepared when it comes to adding green building projects to its list of services offered.
