Home building and remodeling accounted for the majority of the demand for green building materials in 2008, despite the housing sector's sharp decline, according to a new study by The Freedonia Group, a Cleveland-based market research firm. Although single-family construction's demand for green building materials declined by 7 percent annually between 2006 and 2008, the study found that in 2008 the single-family segment alone generated 80 percent of demand. On the other hand, demand from the multifamily segment grew between 2006 and 2008.

Several product categories rose to the fore as demand for green building materials increased, including structural products, pavement, and building systems, which achieved double-digit annual growth. Demand for energy-efficient lighting fixtures and Forest Stewardship Council-certified wood products also increased. Of all the green product segments, building systems and pavement are expected to grow the fastest through 2013, even though they account for a small portion of the residential market overall. Interior and exterior product segments will see the largest gains, according to the report.

Over the past decade, the overall residential market for green building materials grew to $32.9 billion, increasing by 12 percent annually between 1998 and 2006. As the housing industry recovers from the current downturn and new construction and remodeling pick up, demand is expected to increase by 10 percent each year through 2013, growing the market to $53 billion. According to Freedonia's study, demand for green building materials during housing's recovery will increase at a faster rate than in the past decade and will be fastest in the single-family segment.