Month: February 2024

Home Builders and Remodelers Embrace Greener Practices, Surpassing 2019 Levels

February 27, 2024

New study reveals surging adoption of water and materials conservation and energy efficiency in building practices

BEDFORD, MA, Feb. 27—Today, Dodge Construction Network and the National Association of Home Builders (NAHB) unveiled the latest findings from the Building Sustainably: Green & Resilient Single-Family Homes 2024 SmartMarket Brief. As the latest in a series of studies conducted by Dodge and NAHB, this comprehensive report showcases a remarkable uptick in the adoption of green building products and practices, signaling a dynamic shift toward sustainability among home builders and remodelers.

When asked about their use of 22 specific products and practices, builders and remodelers reported the following average usage increases from 2019 (the last time the survey was conducted) to 2024:

  • Water Conservation: Increased nine percentage points
  • Materials and Resources Conservation: Rose 12 percentage points
  • Energy Efficiency: Surged 17 percentage points

These figures underscore a clear and undeniable trend: Homes continue to improve their sustainable performance, with builders and remodelers across the nation embracing eco-conscious practices.

“It is clear that green building has become a mainstream part of the residential construction landscape with more builders and remodelers engaging in sustainable building practices than ever before,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala. “The results also indicate a potential for future growth by driving market demand for green homes, as well as an increased move toward enhancing homes through resiliency practices.”

Despite the uptick in specific green practices, many builders and remodelers do not perceive an overall increase in the construction of green homes. The study revealed marginal growth in 2024 compared to 2019 in the number of respondents who indicated that over half of their home projects were green. The number of new home projects reported increased by just one percentage point and remodeling projects by five percentage points.

“The study strongly indicates that incorporating energy efficiency, as well as water and materials conservation, into their projects is becoming part of the standard practice for builders,” says Donna Laquidara-Carr, industry insights research director at Dodge. “This suggests a likely improvement in the overall performance of housing stock, even if the share of homes flagged as green buildings has not appeared to change significantly.”

Driving Market Demand for Green Homes

The findings also highlight a clear opportunity to boost the adoption of green homes by stimulating market demand. Currently, 82% of builders and remodelers report that home appraisals infrequently or never reflect a home’s green value, while 72% infrequently or never see green features in MLS listings. Without clear visibility into available features or the tangible benefits of green building home value, consumers are less likely to invest in the additional costs associated with sustainable construction.

Greater awareness and accessibility of government and utility incentives could also significantly drive green home construction. While only 16% of builders and remodelers report incentives as a top reason for building green, a substantial 48% express that the presence of such incentives in their area would strongly motivate them to increase their commitment to green building.

Enhancing Home Resilience: Regional Insights

The study also delved into specific products and practices enhancing home resilience against natural hazards, such as wind, floods, fire and earthquakes. Findings underscore significant regional differences, even in areas where hazards such as wind and floods are increasingly prevalent in many parts of the United States. Wind and floods are the most commonly addressed hazards, with 55% of builders and remodelers actively seeking to mitigate impacts of wind and 44% addressing floods. Attention to these hazards is particularly strong in the South, with 64% addressing wind and 52% addressing floods in that region.

Download the Building Sustainably: Green & Resilient Single-Family Homes 2024 SmartMarket Brief to gain full access to the report’s comprehensive insights.

The post Home Builders and Remodelers Embrace Greener Practices, Surpassing 2019 Levels appeared first on Dodge Construction Network.

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Construction Starts Grow 1% in January

February 22, 2024

Amidst persistent high interest rates, building starts weaken, while nonbuilding starts show growth.

BEDFORD, MA —February 20, 2024 — Total construction starts grew 1% in January to a seasonally adjusted annual rate of $1.16 trillion, according to Dodge Construction Network. Nonbuilding starts rose 9% during the month, while nonresidential building starts fell 2% and residential starts were flat.

For the 12 months ending January 2024, total construction starts were down 1% from the 12 months ending January 2023. Nonresidential building starts were down 5% while residential starts were 8% lower, with nonbuilding starts up 17% on a 12 month rolling sum basis.

“Construction starts are struggling to make headway in the new year,” said Richard Branch, chief economist for Dodge Construction Network. “Construction starts will continue to struggle early on in 2024 as higher interest rates and tight credit standards are slowing down projects moving through the planning cycle to start. The Federal Reserve is expected to cut rates later this year. That will move some of these projects in the planning queue through to start and provide for a more stable rising trend in construction activity in the second half of the year.”

Nonbuilding

Nonbuilding construction starts in January rose 9% to a seasonally adjusted annual rate of $280 billion. Environmental public works starts rose 38%, while highway and bridge starts improved 9% and miscellaneous nonbuilding starts gained 4%. Utility/gas starts lost 35% in January.

For the 12 months ending January 2024 total nonbuilding starts were 17% higher than the 12 months ending January 2023. Highway and bridge starts were 11% higher, while environmental public works starts gained 10%. Utility/gas starts were 36% higher, while miscellaneous nonbuilding starts jumped 18% during the 12 months ending January 2024.

The largest nonbuilding projects to break ground in January were the $610 million Nelson Wastewater Treatment facility in Mission, Kansas, a $517 million wastewater treatment plant in Ewa Beach, Hawaii, and the $473 million I-10 bridge in Pensacola, Florida.

Nonresidential

Nonresidential building starts lost 2% in January to a seasonally adjusted annual rate of $483 billion. Commercial starts were 14% lower with hotel starts the only category to post a gain. Institutional starts were 1% lower with both education and healthcare down, while manufacturing starts rose 26%.

For the 12 months ending January 2024, nonresidential building starts were 5% lower than the previous 12 months. Manufacturing starts were down 20%, commercial starts were 10% lower, and institutional starts were 9% higher for the 12 months ending January 2024.

The largest nonresidential building projects to break ground in January were the $5.5 billion Texas Instruments fabrication plant in Lehi, Utah, the $2.6 billion Terminal B construction at George Bush Houston Airport in Houston, Texas, and the $1.0 billion BlueOval battery plant in Marshall, Michigan.

Residential

Residential building starts were flat from December to January at a seasonally adjusted annual rate of $393 billion. Multifamily starts improved 6% while single family starts lost 3%.

For the 12 months ending January 2024, residential starts were 8% lower than the previous 12 months.  Single family starts were 8% lower, while multifamily starts were 7% lower on a 12 month rolling sum basis.

The largest multifamily structures to break ground in January were the $1.5 billion One Beverly Hills tower in Beverly Hills, California, the $447 million Olara Condominium tower in West Palm Beach, Florida, and the $330 million The Exchange at Spring Hill Station in Tysons, Virginia.

Regionally, total construction starts in January rose in the West, but fell in all other regions.

Watch Chief Economist Richard Branch discuss January Construction Starts here.

January 2024 Construction Starts

January Starts

January Starts

 

 

 

 

 

 

 

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