A Turning Point Year for Green Building
A year of steady innovation, collaboration and market resilience has positioned high-performance home building to enter 2026 stronger and more impactful than ever.
As we close out the year, it’s worth reflecting on how far high-performance and sustainable home building has come, and what the trends of 2025 suggest for the year ahead. Despite fluctuating interest rates, ongoing supply-chain pressures and persistent affordability challenges, the green home building sector has maintained momentum and made meaningful progress in innovation, design and collaboration.
This year has reinforced that progress in sustainable construction depends on persistence and teamwork. Builders demanding higher standards, homeowners seeking healthier living environments, manufacturers investing in new technologies and designers challenging conventional approaches have all contributed to a clear shift: sustainability is no longer an aspiration, it is the foundation of modern home building.
The conversation around environmental performance continues to mature. It has moved from “what’s green” to “what performs, what endures and what enhances the lives of those inside the home.” Certifications such as LEED, NGBS and ZERH are increasingly embedded in design and construction processes rather than being optional marketing tools. Builders are integrating energy modeling from the outset, embracing all-electric systems, optimizing passive solar performance and prioritizing materials transparency with unprecedented rigor.
Collaboration has also strengthened this year. Architects, engineers and product manufacturers are working together in a whole-house approach. Teams that treat building envelopes, mechanical systems and indoor health features as interconnected elements are elevating the baseline quality of residential construction nationwide.
Market headwinds were present in 2025. Elevated borrowing costs and construction inflation slowed some segments of new-home demand. Yet homeowners increasingly recognize the long-term value of high-performance homes. Energy-efficient designs, improved indoor air quality and climate resilience are influencing purchase decisions, demonstrating that demand for sustainable homes is informed and resilient.
Manufacturers, too, are stepping up. Across insulation, HVAC, water-saving fixtures and low-toxicity materials, research and development investments are enabling builders to meet rising performance expectations. The adoption of all-electric systems and heat pumps matured this year, delivering efficiency and comfort while solar-ready designs and battery storage become more mainstream.
Looking ahead to 2026, opportunities are substantial. Federal and state incentives continue to support high-efficiency systems, local programs encourage better building envelopes and cleaner energy and a new generation of environmentally conscious homebuyers is emerging as a significant driver of demand. Builders who integrate resilient, sustainable design will be well-positioned to lead the market.
At Danielian Associates, we are preparing to set a new benchmark in high-performance residential design with the ABC Green Home 5.0 project, a two-year development in Temecula, California. Year one, 2026, introduces the design team members, led by Danielian Associates, alongside architecture and product partners. This phase will feature photorealistic renderings, videos and detailed engineering designs for MEP systems. Year two, 2027, will see construction begin on the home itself, incorporating the latest in energy-efficient, sustainable and resilient design.
This project builds on the legacy of ABC Green Home 3.0, completed in 2017 and designed by Danielian Associates, which established a foundation for high-performance residential design. ABC Green Home 5.0 represents a new chapter, highlighting both the contributions of our design team and the continued evolution of green building standards.
To our colleagues, clients and partners across the industry, thank you for your vision, innovation and dedication. Together, we are shaping a future where green, resilient and high-performance homes are the standard, not the exception.
Here’s to reflecting on a year of meaningful progress and looking forward to a greener, healthier and more resilient 2026.
John Danielian is the President of Danielian Associates. He may be reached at jdanielian@danielian.com
This column is featured in our November/December issue of Green Home Builder
