2024 State of the Building Industry

The economy is clearly top of mind for consumers. The good news: green building is poised to benefit, but perhaps it is time for us to refine our messaging.

The election results unmistakenly demonstrated that the economy is top of mind for consumers. Green Builder Media’s hot-off-the-press 2024 State of the Industry study corroborated that fact, exposing consumer wariness due to tight finances. However, the study also revealed builder optimism and unstoppable forces that are propelling sustainability.

Builder Confidence

Despite persistently high housing costs, inflation, and mortgage rates, the housing market remains strong. Production builders are growing even larger, gaining market share, and reporting healthy profits, even as they adopt more rigorous green building practices. 

In the 2024 State of the Industry study, builders reported a positive sentiment with respect to market conditions: while they recognize affordability concerns, they claim that low inventory, cooling inflation, a robust jobs market, and solid housing fundamentals give them confidence that the housing market will remain strong in 2025 and beyond.

Approximately 60% of builders believe that the economy is getting better, while less than 10% believe conditions are worsening.

Builders confirmed that they are leveraging sustainability to increase profits, decrease costs, and add value to homebuyers. They’re finding ways to tap into incentives and rebates to drive energy efficiency, electrification, healthy home, and resiliency upgrades, and they’re also implementing sales tactics that spotlight the features and benefits of green homes.

Builders asserted that their homebuyers are willing to pay for a spectrum of sustainability upgrades if those upgrades will lower the ongoing cost of homeownership over time. 

Consumer Caution

Consumers were less optimistic this year than builders. They confirmed that they’re feeling the pinch of inflation, high home prices, and elevated interest rates. 

Unlike builders, 60% of consumers think that the economy is getting worse—nearly 15% more than last year.

Nonetheless, consumer interest in sustainable homes continues to grow. In fact, financial conditions are driving increased awareness about operating and maintenance costs, and more frequent and intense climate events are amplifying awareness about the benefits of resilient building. These two dynamics are translating into an enhanced willingness—especially by younger generations—to invest in upgrades like energy efficiency, electrification, healthy home, water conservation, resiliency, smart home, and solar + storage.

And, for the first time ever, Boomers, Gen Xers, Millennials, and Gen Zs reported that, when purchasing a home, they focus more on long-term value and operating costs rather than upfront price and cost per square foot, clearly indicating that financial considerations, like monthly utility bills and enhanced resiliency, are key purchase drivers. 

The Business Case for Green Building

Historically, sustainability was a “nice-to-have” add-on or upgrade, but that’s simply not the case anymore, especially given rising energy costs, increasing monthly bills, and access to incentives and rebates to support energy efficiency, electrification, and resiliency upgrades.  

With the growing focus on economic stability, green building has become a compelling investment that benefits both the environment and personal finances. According to the U.S. Department of Energy, green homes can save homeowners up to 30% annually on energy bills. A 2023 National Association of Realtors study showed that green homes capture an average of 8%—and sometimes up to 30%—of added value over a conventionally built home of comparable size and location, and that green homes tend to sell faster. 

A Requisite Webinar

If cost savings and financial wherewithal is on the minds of consumers, then let’s give them the information they need to make informed decisions about why green homes offer substantial cost savings and a competitive edge by enhancing property value and appeal!

To learn more about industry trends and relevant messaging, watch my webinar below:

Interested in learning more? Green Builder Media’s COGNITION Academy has robust courses on net zero carbon building, green building fundamentals, green product essentials and green building program like ENERGY STAR, Zero Energy Ready Homes, Indoor airPLUS, WaterSense, and HERS ratings. Visit the COGNITION Academy microsite to enroll today!

Check out the COGNITION Carbon Offsets Marketplace if you’re interested in purchasing carbon offsets to mitigate emissions from your products, projects or lifestyle.