5 Major Risks to Green Building Market Growth

The growth of the green building market has been widely celebrated recently, spurred largely by government policies and rising recognition that such structures are more economical to operate. The forces behind the industry are so strong now that research firm McGraw-Hill Construction predicts green buildings will represent 20-25 percent of new commercial and institutional construction starts by 2013, from about 10-12 percent today.

But while the benefits of designing buildings to use energy, water and other natural resources more efficiently are clear, that doesn’t mean the industry’s growth is free from risk. A number of hurdles will need to be overcome in the coming years that, if not corrected, could significantly slow the market.

In a nutshell, the five major risks are:
1. Financial
2. Legal
3. Green-washed Building Materials
4. Driving Energy Retrofits
5. Regulatory Risk

Here in Georgia, construction costs are a primary driver of affordability. When the costs of lumber, plywood, OSB, engineered wood, doors, windows and roofing increase, the ability to finance and sell a home decrease. For example, while the use of composite wood decking makes sense in the long run, most people opt for less expensive treated lumber when building outdoor structures. -Reid Adams www.coferadams.com