Green Housing Marketplace the Economic

Green Housing Marketplace

The economic and financial crisis that characterizes today's world and the prior circumstances of its establishment has determined significant changes in the housing sector. For example, the traditional construction sector has slowed down, while green housing is currently experiencing a boom period (McLaughlin, 2007).

As a consequence, the green construction sector's rapid growth and development has led to increased competition among the companies that provide green construction services, especially global ones, but also among raw materials suppliers (Carlton, 2007).

The evolution of the housing market competition is a normal one. The high prices of traditional housing that many individuals cannot afford during the crisis and the financial advantages provided by green housing have determined more and more customers to address this type of construction.

In a market with many buyers, it was only natural that the number of competing companies would increase. This is very helpful for buyers, since increased competition leads to reduced prices. This way, green housing intensifies its advantages.

The core competencies of large construction companies are numerous. They include: experience, highly skilled and trained personnel, a series of innovations they have managed to develop and implement.

Large construction companies have a worldwide experience that recommends them for projects regarding green housing. Their tradition in the industry is proof of their abilities and competencies in the field. It is quite difficult for customers to trust a new, small construction company that may have lower prices, but it does not have the experience required by such construction projects.

The human resources employed by large companies are probably the most important resource and competence the customers can benefit from. The financial status of large construction companies allows them to select and to employ the best engineers and architects in the field, in addition to auxiliary personnel of the same quality.

In a field like housing construction, whether it is tradition or green, human resources have the highest importance. Their quality and experience is reflected in the quality of the houses they build. Smaller construction companies cannot afford the highest skilled personnel, which creates a major disadvantage.

It is difficult to say whether these companies are financially sound or not on medium term and long-term. The financial investments required by constructions and the financial sustainability of these companies on long-term suggest that there are no financial difficulties affecting large construction companies.

But these companies are also subjected to the economic and financial crisis and also to the fluctuations of the market. Financial possibilities of customers have a direct influence on the financial performance of construction companies. Given the global market conditions, it is expected that the incomes of construction companies will decrease.