Learn about the true contribution of the green building sector to the U.S. economy from the latest USGBC report.
The green construction industry has grown tremendously the last decade with more growth to come. This is the takeaway from an economic impact study from the U.S. Green Building Council (USGBC).
Building off a 2009 study looking at the economic impact of both green and LEED (Leadership in Energy and Environmental Design) construction, the USGBC released an updated report in September 2015. It included findings from the previous study and added new trends related to labor, GDP and wage impacts.
According to the report—produced with Booz Allen Hamilton—the green construction industry is expected to see continual growth over the next several years. Driving forces include investment in green technologies, increased government infrastructure spending as well as value placed on environmentally sustainable buildings.
Green Construction and LEED Construction
Green construction refers to buildings that are not LEED certified but are still designed with environmental and energy reduction measures. Or they are certified by non-LEED, third-party building certification systems. Conversely, LEED construction denotes buildings certified by the USGBC, which governs the certification program. While buildings in both categories are considered “green,” the USGBC highlights the differences among LEED and non-LEED direct economic impacts.
Regardless of both definitions, there is a clear case for the growing popularity and adoption of the green building sector. Research has shown that a green investment of only 2% of construction costs can result in lifecycle savings of ten times the initial investment.
Top USGBC Findings: 2011–2014 Trends
A look at the overall impact of green construction on the U.S. economy from 2011–2014:
- The green construction market generated $167.4 billion in GDP and supported over 2.1 million jobs. It also produced $147.7 billion in labor earnings.
- LEED-related construction generated $80.6 billion in GDP. It supported over one million jobs and created $70.9 billion in labor earnings.
Growth for the Sector: USGBC Forecasts for 2015–2018
The USGBC also expects strong growth for the sector, noting that both green and LEED construction will outpace general construction spending.
- Green construction is expected to grow by 15.1% for spending (an increase from $150.6 billion in 2015 to $224.4 billion in 2018).
- LEED is forecast to see a year-over-year growth rate of 12.3% (an increase from $61.8 billion spending in 2015 to $78.6 billion spending in 2018).
- The two sectors are also expected to generate 5.3 million jobs by 2018 as well, 3.9 million from green construction, 1.4 million from LEED construction.
As the real estate sector continues adopting sustainability, this practice produces many gains. The properties reap the benefits of green investment through a reduction in energy use and operating costs. And local economies benefit through direct job and wage creation.
Top image credit: Marcin-linfernum / Shutterstock.com
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