Multifamily Housing Green Building Trends and Forecast
The future of the global multifamily housing green building market looks promising with opportunities in the individual, commercial, and municipal markets. The global multifamily housing green building market is expected to reach an estimated $358.8 billion by 2030 with a CAGR of 16.7% from 2024 to 2030. The major drivers for this market are the growing consumer awareness boosts green construction along with rising investment in energy efficiency is anticipated to fuel the market.
• Lucintel forecasts that, within the type category, the new construction segment is expected to witness higher growth over the forecast period.
• Within the application category, commercial will remain the largest segment.
• In terms of regions APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Multifamily Housing Green Building Market
The supply side of the multifamily housing green building market is characterized by several growing trends that enhance the imagination in the quest for green technologies in urban residential development.
• Adoption of Green Building Technologies: Multifamily housing designs adopt social responsibility frameworks that include measures to manage energy costs. These systems enable real-time control and monitoring of the amount of energy being consumed, resulting in better efficiency and lowering the operational expenditure of both developers and occupants.
• Sustainable and Recycled Materials: The trend of adopting sustainable and recycled materials when constructing multifamily houses is on the rise. The use of thin-walled steel, bamboo, and sustainable concrete as construction materials helps curb adverse effects on the environment while enhancing construction practices.
• Emerging Water Conservation Products: Water efficiency is developing into a fundamental element of green building practices in many new building projects, particularly in areas dealing with water shortages. In multifamily housing, water-saving technologies such as rainwater harvesting, reuse of greywater, and low-flow fixtures are employed to minimize water use.
• Growth of Green Certification Programs: The upsurge of various green certification programs such as LEED, GRIHA, and BREEAM is motivating builders to opt for the green route in construction. These certifications provide a strategic advantage in the market as they show concern for the environment and energy usage as well.
• Energy-Efficient Remodeling for Old Buildings: Addressing challenges, there is a tendency to retrofit existing old multifamily structures with energy-efficient systems. This strategy reduces carbon emissions amid low operational costs and helps increase the lifespan of existing buildings, making it a significant approach toward the sustainable growth of cities.
These trends are creating a paradigm shift in the multifamily housing green building market, where there is a boost in the use and adoption of sustainable technologies and practices.
Recent Developments in the Multifamily Housing Green Building Market
Recent developments in the multifamily housing green building market reflect a growing emphasis on sustainability and energy efficiency. Advances in green building technologies and increased regulatory support are driving the adoption of eco-friendly practices in multifamily residential projects, reshaping the industry landscape.
• Integration of Solar Energy Systems: The use of solar panels is growing in attached multifamily housing projects, serving as a renewable energy source that reduces carbon and running costs. This growth is particularly evident in markets like the US and China, where solar energy usage is rising.
• Green Certification for New Projects: The popularity of green-certified designs for multifamily buildings has increased and will continue to grow. There is demand from clients for developers to go green and acquire certifications like LEED and GRIHA, positively impacting the market through the steady growth of green building practices and materials.
• Passive House Design Implementation: With a focus on multi-story residential buildings, Germany is at the forefront of passive house concepts, aiming to improve energy efficiency with less heating and cooling usage. This is complemented by the country’s ambitious environmental policies, setting an example for other countries.
• Smart Energy Management Integration: Energy management systems that optimize energy use and minimize waste in residential construction have become key elements in design and structures. Such systems provide feedback and control over energy usage while promoting energy efficiency in urban housing.
• Eco-Friendly Construction Materials: Recycled materials and green materials, such as sustainable concrete and reclaimed wood, are increasingly being employed in the construction of multifamily housing. This shift to greener materials positively impacts the construction industry, making building materials more sustainable.
These developments are advancing the multifamily housing green building market through the adoption of clean energy technologies, energy-efficient practices, and green building processes.
Strategic Growth Opportunities for Multifamily Housing Green Building Market
Strategic growth opportunities in the multifamily housing green building market are expanding as demand for sustainable living solutions rises. Innovations in green building technologies, supportive regulations, and shifting consumer preferences create promising avenues for growth, offering substantial potential for investment and development in eco-friendly multifamily residential projects.
• Renewable Energy Integration: The use of alternative energy sources, such as solar and wind energy, provides significant growth opportunities for the multifamily housing green building market. Developers who seize these opportunities can cut energy costs and appeal to green buyers and renters.
• Water Conservation Solutions: Implementing water consumption reduction methods, such as greywater system installation or rainwater harvesting, offers growth opportunities in arid regions. Affordable housing projects designed for water savings can comply with building policy requirements while contributing positively to the environment.
• Smart Building Technologies: There is considerable room for growth in the use of smart building technologies in the multifamily housing sector. Energy management systems, smart thermostats, and automated lighting facilitate energy usage control, reducing operational costs and increasing sustainability.
• Sustainable Construction Materials: The rising demand for natural building materials provides advantages for project developers in marketing their projects. The eco-friendly use of bamboo, crafted steel, and comprehensive green building practices can help minimize negative environmental effects.
• Green Certification Programs: Among various options, green certification programs are a strategic way for developers to enhance the success of their projects in the market. Green Building Layers, GRIHA, and LEED certification help projects exceed legal compliance in environmental protection, making them attractive to environmentally friendly buyers and investors.
Robust changes and developments within the multifamily housing green building market are being witnessed due to these growth opportunities, particularly in renewable energy, intelligent technologies, and sustainable building evolution.
Multifamily Housing Green Building Market Driver and Challenges
The multifamily housing green building market is steered by numerous technological, economic, and regulatory variables that act both as drivers and barriers.
The factors responsible for driving the multifamily housing green building market include:
• Growing demand for sustainable housing: There has been an upsurge in the need for environmentally friendly and energy-efficient housing. This trend is making developers change their course in the construction of multifamily housing projects by embracing green building techniques.
• Government regulations and incentives: Environmentally safe building practices are encouraged by the government in many countries because more regulations have been put forward in the building industry, and many incentives are given to green buildings. These policies help convince developers to use energy-conserving technologies and environmentally friendly materials for their projects.
• Technological advancements in building materials: There are developments of greener construction materials, such as recycled concrete and other materials that insulate buildings without using much energy, hence making it simpler for developers to obtain green accreditation. These new changes help lessen building costs as well as enhance the performance of the buildings.
• Increased focus on energy efficiency: There is an increasing need for energy-efficient and green multifamily housing units because of rising energy prices and the urge to cut down carbon emissions. Developers are incorporating renewable energy systems and management technologies to satisfy market and regulatory needs.
• Addressing urbanization and population growth: The increasing urbanization and rapid population growth are increasing the need for multifamily housing units. With the growth of cities and metropolises, additional emphasis is placed on green construction as part of a sustainable built environment.
Challenges in the multifamily housing green building market include:
• High initial costs: The costs incurred in green building practices, technologies, and materials are much higher compared to conventional building practices. This cost factor is likely to scare away several developers, primarily in price-sensitive markets.
• Lack of awareness and expertise in some areas: There is low knowledge and awareness of green building technology. This knowledge gap can result in delays in the use of eco-friendly construction techniques and tools.
• Regulatory complexity: Most developers have problematic issues with the laws that regulate green building, and some have opted not to pursue such projects. Conforming to the multitude of local, national, and even international views and standards requires heavy investments in development activities.
• Limited access to sustainable materials: There are markets where sustainable materials are not available due to economic and political factors. Such limitations can increase construction costs, thereby prompting the slow adoption of modern building practices.
• Economic uncertainty: Fluctuations in the economy and associated uncertainties affect the financing of green building projects. It is likely that the economy will not be favorable for developers to take risks and invest their capital into green materials and technologies, thus stalling market growth.
These elements are the leading factors contributing to the emerging market for green building within the multifamily housing segment and create a market for such building practices. Developers must navigate through these barriers even as the demand for such housing continues to rise.
List of Multifamily Housing Green Building Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies multifamily housing green building companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the multifamily housing green building companies profiled in this report include-
• Turner Construction
• Clark Group
• AECOM
• Swinerton
• Hensel Phelps
• Skanska
• Lendlease
• Holder Construction
• Webcor
• Walsh Group
Multifamily Housing Green Building by Segment
The study includes a forecast for the global multifamily housing green building market by type, product, construction type, application, and region.
Multifamily Housing Green Building Market by Type [Analysis by Value from 2018 to 2030]:
• New Construction
• Remodeling
Multifamily Housing Green Building Market by Product [Analysis by Value from 2018 to 2030]:
• Interior Products
• Exterior Products
Multifamily Housing Green Building Market by Construction Type [Analysis by Value from 2018 to 2030]:
• Full Green
• Semi Green
Multifamily Housing Green Building Market by Application [Analysis by Value from 2018 to 2030]:
• Individual
• Commercial
• Municipal
Multifamily Housing Green Building Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Multifamily Housing Green Building Market
Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below are recent developments by major multifamily housing green building producers in key regions: the USA, China, India, Japan, and Germany.
• United States: In the US, there is increased attention towards energy-efficient technologies and materials in multifamily housing. Multifamily buildings are becoming self-sufficient using solar panel energy systems and sustainable building methods. These include certification programs like LEED and Energy Star, which are vital in the development of sustainable projects.
• China: The green building industry in China is developing rapidly, including energy-efficient and low carbon footprint multifunctional housing construction. As a result, China is pushing forward greener buildings through legislation that cultivates energy-efficient materials and technologies and aligns with the larger climate change aspirations of the nation.
• Germany: Germany remains at the forefront of innovation in green building technologies, particularly regarding multifamily houses. Passive houses, deep energy retrofitting, and renewable energy integration are emphasized by environmentally friendly policies and government support for sustainable living.
• India: In India, due to increasing urbanization and the rising need for green buildings, the multifamily housing green building market is growing. Current trends in the construction industry seek to address water use, timber management, and other sustainable practices, with supporting government movements like GRIHA encouraging green building.
• Japan: Advances in green building technologies have been particularly visible within the multifamily housing industry, where energy-efficient and earthquake-resilient buildings are constructed. New facets now revolve around energy smart management systems, solar energy, and green building products fueled by the government’s desire to cut emissions and make buildings more resilient to disasters.
Features of the Global Multifamily Housing Green Building Market
Market Size Estimates: Multifamily housing green building market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Multifamily housing green building market size by type, product, construction type, application, and region in terms of value ($B).
Regional Analysis: Multifamily housing green building market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, product, construction type, application, and regions for the multifamily housing green building market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the multifamily housing green building market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the multifamily housing green building market size?
Answer: The global multifamily housing green building market is expected to reach an estimated $358.8 billion by 2030.
Q2. What is the growth forecast for multifamily housing green building market?
Answer: The global multifamily housing green building market is expected to grow with a CAGR of 16.7% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the multifamily housing green building market?
Answer: The major drivers for this market are growing consumer awareness boosts green construction along with rising investment in energy efficiency is anticipated to fuel market.
Q4. What are the major segments for multifamily housing green building market?
Answer: The future of the global multifamily housing green building market looks promising with opportunities in the individual, commercial, and municipal markets.
Q5. Who are the key multifamily housing green building market companies?
Answer: Some of the key multifamily housing green building companies are as follows:
• Turner Construction
• Clark Group
• AECOM
• Swinerton
• Hensel Phelps
• Skanska
• Lendlease
• Holder Construction
• Webcor
• Walsh Group
Q6. Which multifamily housing green building market segment will be the largest in future?
Answer: Lucintel forecasts that new construction segment is expected to witness higher growth over the forecast period.
Q7. In multifamily housing green building market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the multifamily housing green building market by type (new construction and remodeling), product (interior products and exterior products), construction type (full green and semi green), application (individual, commercial, and municipal), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?