The overall green building market (both non-residential and residential) is likely to more than double from today’s $36-49 billion to $96-140 billion by 2013

The value of green building construction is projected to increase to $60 billion by 2010

The construction market accounts for 13.4% of the $13.2 trillion U.S. GDP

Market Impact

• The green market was 2% of non-residential construction starts in 2005; 10-12% in 2008; and will grow to 20-25% by 2013
• Comprises 13.4% of the $13.2 trillion U.S. GDP.  This includes all commercial, residential, industrial and infrastructure construction.  New commercial and residential building construction constitutes 6.1% of the GDP
• Green building will support 7.9 million U.S. jobs and pump $554 million into the American economy over the next four years (2009-2013)

Energy

• Buildings represent 38.9% of U.S. primary energy use (includes fuel input for production)
• Buildings are one of the heaviest consumers of natural resources and account for a significant portion of the greenhouse gas emissions that affect climate change.  In the U.S., buildings account for 38% of all CO2 emissions
• Buildings represent 72% of U.S electricity consumption

Water  

• Buildings use 13.6% of all potable water, or 15 trillion gallons per year

Materials  

• Buildings use 40% of raw materials globally (3 billion tons annually)
• The EPA estimates that 170 Million tons of building-related construction and demolition (C&D) debris was generated in the U.S. in 2003, with 61% coming from nonresidential and 39% from residential sources
• The EPA estimates that 209.7 million tons of municipal solid waste was generated in the U.S. in a single year

Sectors Expected to Have Green Building Growth

• Education
• Government
• Industrial
• Office
• Healthcare
• Hospitality
• Retail

What’s Driving Green Building? 

These factors are expediting the growth of green building

1. Unprecedented level of government initiatives
2. Heightened residential demand for green construction
3. Improvements in sustainable materials.
   
   

Why Build Green? Building green saves money

• The cost per square foot for buildings seeking LEED Certification falls into the existing range of costs for buildings not seeking LEED Certification
  
  
• An upfront investment of 2% in green building design, on average, results in life cycle savings of 20% of the total construction costs – more than ten times the initial investment
  
  
• Building sale prices for energy efficient buildings are as much as 10% higher per square foot than conventional buildings
  
   
• Estimated Value of green construction starts
• 2000: $792 million 
• 2001: $3.24 billion 
• 2002: $3.81 billion 
• 2003: $5.76 billion 
• 2004: $4.51 billion
• 2010 (projected): $60 billion (10% construction starts)

• Real estate and construction professionals overestimate the costs of green building by 300%
  
  
• Perceived cost benefits of green building
  
  
  • Operating costs decrease 8-9%
  • Building value increases 7.5%
  • Return on investment improves 6.6%
  • Occupancy ration increases 3.5%
  • Rent ratio increases 3%
    
    
  • Building green stimulates the economy by creating a demand for green jobs and workers that can contribute directly to creating a sustainable future.  If the proposed green economic recovery program is instated, the US economy could generate 2 million green jobs in as short a stretch as two years
    
    

Why Build Green? Green buildings consume less energy and fewer resources

• In comparison to the average commercial building
  • Green buildings consume 26% less energy
  • Green buildings have 13% lower maintenance costs
  • Green buildings have 27% higher occupant satisfaction
  • Green buildings have 33% less greenhouse gas emissions
    
    

Why Build Green? Green building occupants are more productive

• An experiment identifies a link between improved lighting design and a 27% reduction in the incidence of headaches, which accounts for 0.7% of overall employee health insurance cost at approximately $35 per employee annually

• Sales in stores with skylights were up to 40% higher compared to similar stores without skylights

• Students with the most daylighting in their classrooms progressed 20% faster on math tests and 26% faster on reading tests in one year than those with less daylighting

• Corporate perception of whether green fosters innovation: 57% agree; 28% neutral and 15% disagree

• Improvements in indoor environments are estimated to save $17-48 billion in total health gains and $20-160 billion in worker performance
  
  

Why Build Green? Green building occupants are healthier

• People in the U.S. spend about 90% of their time indoors
  
  
• EPA studies indicate indoor levels of pollutants may be up to ten times higher than outdoor levels 
  
  
• Significant associations exist between low ventilation levels and higher carbon dioxide concentrations – a common symptom in facilities with sick building syndrome