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 | Jan 5, 2018
Building code officials should vet building product evaluation methods
Evaluation service providers should be properly accredited.
Codes and Standards | Jan 4, 2018
U.S. military needs to do more to address climate change risk for facility design
GAO report cites hundreds of overseas facilities in peril.
Codes and Standards | Jan 3, 2018
China Construction America faces billions of dollars in liability in lawsuit
Court filing alleges massive fraud and breaches of contract in Baha Mar Resort Project.
Codes and Standards | Jan 2, 2018
Smart building tech can reap utility savings of 8% to 18% in commercial buildings
Potential for increased deployment of smart building technology is great beyond early adopters.
Reconstruction & Renovation | Dec 21, 2017
Interactive map includes detailed information on historic New York City buildings
The New York City Landmarks Preservation Commission launched a new, enhanced version of its interactive map, Discover NYC Landmarks.
Codes and Standards | Dec 20, 2017
Moody’s says cities may face credit downgrades if they don’t address climate risks
Credit ratings giant will ask what communities are doing to mitigate risk exposure.
Codes and Standards | Dec 18, 2017
Schools with optimal indoor environments boost student performance and energy efficiency
World Green Building Council report confirms that lighting, indoor air quality, thermal comfort and acoustics impact learning.
Codes and Standards | Dec 14, 2017
Mayors sign Chicago Climate Charter; will strive to meet Paris accord goals
Pledge to push for more local authority to reduce emissions.
Codes and Standards | Dec 13, 2017
New report examines ongoing costs of green infrastructure options
The report compares solutions to reduce stormwater.
Codes and Standards | Dec 12, 2017
Total cost of structural fires in U.S. reached $328.5 billion in 2014
Costs associated with losses was $55.4 billion.
