Apartment renters expect sustainable design features in units
Homebuyers aren’t the only ones expecting residences that are green and sustainable. Apartment renters do, too.
They want to live in units that promote good indoor air quality and save on energy, experts say.
“What used to be exceptional is now every day,” Dave Borsos, vice president of capital markets for the National Multifamily Housing Council (NMHC), a multifamily industry advocacy group, told National Real Estate Investor.
The demand among prospective renters for green features has reshaped the way builders construct and renovate multifamily buildings. As a result, 42 percent of multifamily financing provided by Fannie Mae in 2017 qualified for its Green Rewards program, which offers lower interest rates to apartment properties that have earned green building certifications or pledge to cut their energy use by 25 percent or more through renovations.
Adding green and sustainable features pays dividends for renters. It also pays, literally, for builders.
Renters are willing to pay an extra $27.21 a month in rent to live in buildings with green certifications, according to the 2017 NMHC/Kingsley Renter Preferences Report. The report uses surveys of 269,000 renters about which factors guide their decisions on where they want to live.
Roughly two-thirds (61 percent) of renters said that they were “interested” or “very interested” in living in apartment buildings that have earned a certification for energy efficiency or sustainable design in 2017, according to the report.