Renters in many U.S. cities have come to expect green features in apartments that they rent, with an eye toward energy efficiency and healthy indoor air, according to a report by National Real Estate Investor. New apartment units today almost always include some green features, with renovations often incorporating sustainable design components.
Some 42% of overall multifamily financing provided by Fannie Mae in 2017 qualified for its Green Rewards program. That program offers lower interest rates to apartment properties that have earned green building certifications or pledge to cut their energy use by at least 25% through renovations.
Tenants are willing to pay an extra $27.21 a month to live in buildings that have green certifications, according to the 2017 NMHC/Kingsley Renter Preferences Report.
With the cost of incorporating many green features in apartment properties having dropped to be roughly comparable to conventional construction, landlords are meeting the wishes of the market. Fannie Mae’s Green Rewards program often slices about a fifth to a third of a percentage point off the interest rates offered to apartment borrowers.
In 2017, Fannie Mae provided $27.6 billion in financing to qualified apartment properties through Green Rewards.
Related Stories
Codes and Standards | Apr 26, 2018
New standard supports community resilience
ASTM International guidance supports cost-effective ways to withstand and recover from disasters.
Codes and Standards | Apr 25, 2018
Lessons learned from decades of Superfund cleanups guide contaminated land reuse
Sites repurposed for residential, commercial use, and solar energy generation.
Codes and Standards | Apr 24, 2018
Vibrant downtown core the key for urban multifamily development
Nighttime activity makes the difference.
Codes and Standards | Apr 19, 2018
ILFI launches new Zero Carbon Certification
Offers greater flexibility around project fuel types and offsetting renewables.
Codes and Standards | Apr 18, 2018
New Green Globe pilot program launched
Precursor to revised Green Globes Assessment Protocol for Commercial Buildings.
Codes and Standards | Apr 17, 2018
Contractor charged with fraud in winning $200 million in federal contracts
Accused of falsely claiming veteran- and minority-owned business status.
Codes and Standards | Apr 16, 2018
Wide variations in adoption of National Electric Code could jeopardize safety
An NFPA report found that code adoption is under heavier political scrutiny, leading to delays and decisions motivated by factors other than safety concerns.
Codes and Standards | Apr 12, 2018
Corruption in New York City construction industry is common
Scale of projects, number of players involved contributes to problem.
Codes and Standards | Apr 11, 2018
Urgent need for government to make communities, infrastructure more resilient
More than 350 people died from extreme weather events in 2017.
Codes and Standards | Apr 10, 2018
Boosting energy efficiency helps reduce health risks
Cleaner air results in fewer heart attacks, respiratory disease, and premature deaths.