Northeast Has Highest Percentage of Dedicated Green Builders

Green building and remodeling saw a slight increase from 2019 to 2023, with the Northeast being the most dedicated to constructing sustainable homes, according to the National Association of Home Builders.

The survey of home builders and remodelers defines a green home as one that “incorporates strategies in design and construction that improve energy, water and resource efficiency, indoor environmental quality and minimize environmental impacts on the site; and/or is certified by a third party to the National Green Building Standard, LEED for Homes or any other green rating system or high-performance standard.”

Results showed that 34% of home builders classified more than half of their projects as green in 2023, which is a one-percentage point increase from 2019. For remodelers, that number was 22% last year, a five-percentage point increase from 2019.

The share of builders and remodelers who identified as being engaged in green home projects remained fairly low in 2023 but also saw slight increases from 2019. For builders:

• 22% were dedicated green builders (more than 90% of home projects qualify as green)
• 12% were green builders
• 26% had little green engagement
• 40% had no green engagement

While the majority of builders had no green engagement, the category saw a two-percentage point decrease since 2019.

For remodelers:

• 6% were dedicated green builders
• 16% were green builders
• 35% had little green engagement
• 43% had no green engagement

Likewise, the number of remodelers with no green engagement remained high, but the category saw a notable seven-percentage point decrease from 2019, indicating a slight increase in green engagement.

Regionally, the Northeast had the most dedicated green builders, with 45% reporting that more than 90% of their home projects qualified as green. For other regions, the numbers were:

• West: 28% dedicated green builders
• Midwest: 22% dedicated green builders
• South: 16% dedicated green builders

The top reasons and motivations for completing green projects were:

1. Doing the right thing (48%)
2. Creating healthier homes (38%)
3. Code requirements (36%)
4. Reputation in the industry (30%)
5. Differentiating product in local market (23%)
6. Market demand (18%)
7. Tax credits or government incentives (16%)

As for challenges, builders and remodelers most reported lack of consumer demand (77%) and high expenses (53%) as their top obstacles.