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$140 $70 $ in billions $49 $20 $10 $20 $3 Non residential $70 $7 Residential $36 $24 Non residential $12 Residential $96 $56 Non residential $40 Residential Source: Green Outlook 2009: Trends Driving Change, McGraw-Hill Construction Total Total Industry Reporting Business Beneﬁts Green building is a bright spot in an otherwise tenuous economy. U.S. Green Building Council members report green building to be less affected by the down market compared to non-green building, and homebuyers are willing to pay more for a green home. Perceived economic beneﬁts are driving green building, particularly in the commercial and industrial construction sectors, with industry players reporting the following business beneﬁts: • Decreases of 13.6% in operating costs from green building (up from 8.5% in 2005, a 60% increase) • Increases of 10.9% in building values from green (up from 7.5% in 2005, a 45% increase) • Increases of 9.9% in ROI from green (up from 6.6% in 2005, a 50% increase) • MHC’s research also indicates that 77% of the industry expects revenues to grow as a result of green building. Green home owners are also reporting ﬁnancial beneﬁts from their homes, including on average an 18% decrease in both energy and water bills. 2005 Upper Market Size Lower Market Size Total The Growing Importance of Water Efﬁciency in Buildings The design and construction industry is actively increasing its attention on water efﬁciency, recognizing the bottom line and environmental advantages these practices can create. According to McGrawHill Construction’s newest SmartMarket Report, Water Use in Buildings: Achieving Business Performance Beneﬁts through Efﬁciency, 42% of building owners report heavy involvement in using and requiring water-efﬁcient practices in at least 75% of their building stock. Twenty-eight percent of architectural and engineering ﬁrms and 20% of all contractors are also heavily engaged in water-efﬁciency building practices as this high level. A primary driver to the increased emphasis of water in buildings is the direct relationship between water use and energy consumption. In fact, buildings account for up to 20% of water, and heating water can account for 12% to 18% of a building’s energy consumption. Treating wastewater also consumes signiﬁcant energy. Reducing the use of water in buildings and the amount of run-offs from the built environment that have to be treated can have a signiﬁcant impact on overall energy consumption. Therefore, reduction of water use is an important strategy in the reduction of a buildings carbon and energy footprint. In fact, currently 69% of all industry players rank water use reduction as the second most important green building practice. By 2013, 85% predict that water efﬁciency will be recognized as important. This increase is dramatic, and only energy efﬁciency, at 96%, is considered likely to be even more important. Speciﬁc business beneﬁts expected from the water-saving practices in buildings on average: • Water use decrease of 15%. • Energy use reduction of 11%. • Operating cost savings of 11-12%.

Houston_Green_10.23.09

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