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 | Nov 9, 2016
Louisiana flood projections require urgent action, officials say
The 'no net loss’ prediction now seems unrealistic.
Codes and Standards | Nov 8, 2016
American Concrete Institute offers new guide for repair of concrete buildings
The guide provides assistance on assessment and rehab.
Codes and Standards | Nov 7, 2016
The AISC prequalified seismic moment connection standard is now available
You can download the 2016 version for free.
Codes and Standards | Nov 4, 2016
Obama Administration makes a push for denser, more affordable cities
The administration calls for zoning code changes and other measures to create more housing.
Codes and Standards | Nov 3, 2016
OSHA proposes safety standards changes to reduce employer costs
The changes include clarification on excavation standard and reporting job-related hearing loss.
Codes and Standards | Nov 2, 2016
New resources available to reduce plug loads using advanced power strips
A tenant education program can boost efficiency in office buildings.
Codes and Standards | Oct 26, 2016
Design industry lagging in meeting AIA 2030 Commitment goals, says AIA
Only 4% of projects have met the 70% energy savings target.
Codes and Standards | Oct 25, 2016
Concerns over megaquake in Oregon provoke debate over school building standards
According to advocates, communities should consider increased resiliency.
Codes and Standards | Oct 24, 2016
Building energy codes projected to save $126 billion in energy costs from 2010-2040
Commercial and residential structures are both included in the total.
Codes and Standards | Oct 24, 2016
Fall hazards, hazard communication lead 2016 OSHA top violations
The 2016 list bears a strong resemblance to the 2015 list.