Green Homes Market Expected to Increase Five-Fold by 2016 – Up From a $17 Billion Opportunity Today – Says New McGraw-Hill Construction Study

McGraw-Hill Construction today released findings from a new Green Home Builders and Remodelers study at the National Association of Home Builders (NAHB) International Builders’ Show in Orlando. Green homes comprised 17 percent of the overall residential construction market in 2011 and are expected to grow to between 29 percent and 38 percent of the market by 2016. By value, this equates to a five-fold increase, growing from $17 billion in 2011 to $87-$114 billion in 2016, based on the five-year forecast for overall residential construction.

According to the study, construction industry professionals report an even steeper increase in green home remodeling; 34 percent of remodelers expect to be doing mostly green work by 2016, a 150 percent increase over 2011 activity levels. Many homebuilders have shifted to the remodeling market due to the drastic drop in new home construction. In fact, 62 percent of the builders who do both new and remodeling work verified that the economy has increased their renovation work.

“The housing market is critical to the U.S. economy,” said Harvey M. Bernstein, VP of Industry Insights and Alliances, McGraw-Hill Construction, “and the results of our study show that despite the drastic downturn in housing starts since 2008, green has grown significantly as a share of activity– indicating that the green market is becoming an important part of our overall economic landscape.”

The green home building study, produced by McGraw-Hill Construction in conjunction with the NAHB and Waste Management, is designed to provide key insights into market opportunities, backed by proprietary research surveys and the power of the Dodge database.

By 2016, many more builders anticipate that they will be dedicated to green building work on over 90% of projects—33 percent expect to be dedicated to green work in 2016, up from 17 percent in 2011. Remodeling will grow even more dramatically—22 percent of remodelers report that they anticipate they will be dedicated to green work in 2016, nearly triple the 8% who report being dedicated to green work in 2011.

Many factors are driving the green homes market, with “higher quality” and “increases in energy costs” topping the list, indicating that today’s green homebuyer is not just a green consumer. Buyers recognize that green homes have lower bills due to higher building performance. The reported costs of building a green home have also gone down significantly. Builders report that the cost to go green is now 7 percent, as compared to 10 percent in 2008 and 11% in 2006.

While green is growing across the U.S., three regions are seeing higher than average growth. The West Coast has seen the highest green growth; the Midwest’s northern region, west of the Mississippi, is second highest; and New England ranks third.

Source: PR Newswire

Groupon beats IPO expectations at $20 a share.(Business)

The Seattle Times (Seattle, WA) November 4, 2011 Byline: Rachel Metz and Barbara Ortutay; The Associated Press SAN FRANCISCO — Daily-deals pioneer Groupon priced its initial public offering (IPO) late Thursday at $20 per share.

That’s above its expected range of $16 to $18, indicating investors are excited to snap up the company’s shares.

The price gives Groupon Inc. a market value of $12.7 billion. That makes Groupon’s IPO the second largest by an Internet company, behind only that of Google in 2004. web site groupon nyc

The online search leader made its public debut at a market cap of $23.1 billion seven years ago. In comparison, LinkedIn went public in May with a market value of $4.3 billion and was worth $8.4 billion at the end of trading Thursday.

The pricing is a milestone in a process that served as a reality check for Groupon, a rapidly growing company that has evoked memories of the dot-com boom’s exuberance. Coming at a time of worldwide market turbulence and deep economic woes, Groupon’s IPO has been closely watched by fellow Web startups looking to follow a similar path.

It’s a lofty appraisal for a service that started just three years ago, but a big comedown from the $25 billion estimate floated when the company filed its IPO plans in June, months after rejecting a $6 billion buyout offer from Google.

Groupon began in 2008 when computer programmer Andrew Mason figured out how to get people excited about the low-margin coupon business.

The company started in Chicago and quickly branched out across the country and, shortly thereafter, around the globe. At the end of September, Groupon operated in 175 markets in North America and 45 countries. The company had 143 million subscribers at the end of September and sold 33 million Groupons in the July-September quarter.

Groupon faced a number of difficulties leading up to its IPO. It drew scrutiny from the Securities and Exchange Commission, and rival companies and critics have been popping up left and right.

“This is not Facebook, where they can do no wrong,” said longtime IPO analyst Scott Sweet, the owner of IPO Boutique. He called Groupon an “accident waiting to happen.” Sweet pointed to problems the company has had with the SEC that have led Groupon to restate the way it accounts for revenue, cutting it in half from what it originally reported. The analyst is also one of those who question the company’s business model, its high marketing expenses and frantic hiring pace that has swelled its ranks to more than 10,000 employees. That is about four times as many as Facebook.

Another worrisome sign is the amount of Groupon stock being offered to the public. The company is “floating” 4.7 percent of available shares — 35 million — which is well below the percentage that many prominent tech companies have offered in their IPOs, including Google, online retailer and, more recently, Internet radio service Pandora and professional networking site LinkedIn. This has raised concerns that Groupon is trying to boost demand — and thus its valuation — by limiting supply. site groupon nyc

Mutual funds, pension funds and other major money managers got the first crack at buying most of the IPO’s 35 million shares late Thursday because stock in these offerings is typically sold to investment bankers’ top customers. “Main Street” investors will get their first chance at Groupon on Friday.

In addition to the 35 million shares Groupon sold through its IPO, the company sold 4.5 million more shares to its underwriters — which include, among others, Morgan Stanley, Goldman Sachs and Credit Suisse — to cover over-allotments.

The sale of the 35 million shares mean Groupon’s IPO of stock raised about $690 million, minus investment banking fees and other expenses.

In filings with the SEC, Groupon said it hoped to raise $479 million, after expenses and presuming the stock priced at $17 per share, or $552 million if it also sold the 4.5 million in over-allotment shares. It did not go into details on how it plans to spend the money, though it did specify it won’t need to use it to pay for its operations, including marketing expenses, during the next 12 months.

Neither CEO Mason, 31, nor executive chairman and fellow co-founder Eric Lefkofsky, 42, are selling any shares in the IPO. Mason’s stake in the company is now worth about $938.7 million, given the $20 IPO share price, while the stake of Lefkofsky, who is Groupon’s largest investor and shareholder, is worth about $2.6 billion.


The Associated Press: Groupon’s initial share sale gives Groupon a market value of $12.7 billion. (0418887407)

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