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
| Mar 5, 2014
San Francisco board seeks remedies to code enforcement complaints
Two supervisors charged that a lack of adequate code enforcement has led to blight from dilapidated or unfinished buildings.
| Mar 5, 2014
Obama proposes $1 billion for climate change risk mitigation
President Barack Obama would spend $1 billion to “better understand the projected impacts of climate change,” encourage local action to reduce future risk, and fund technology and infrastructure that will be more resilient to climate change.
| Mar 5, 2014
Southern Forest Products Assn. revamps pressure-treated pine specifications
It provides information to assist with the proper specification and use of pressure-treated Southern Pine materials.
| Mar 5, 2014
UL, PRI Construction Materials Technologies reach product certification agreement
Underwriters Laboratories (UL) Inc. reached an agreement with PRI Construction Materials Technologies LLC (PRI) through which PRI will participate in UL's "Data Acceptance Program," enabling the acceptance of data generated at PRI toward UL product certification.
| Mar 5, 2014
Quebec's building code doesn't meet needs of its aging population
The issue was raised in the wake of a tragic fire at a seniors' residence in L'Isle-Verte.
| Mar 4, 2014
Massachusetts Congressional delegation asks FEMA to slow flood zone map requirements
After a recent successful challenge of the scientific methodology used to redraw the coastal high-hazard zones, the Massachusetts congressional delegation is asking federal officials to put the brakes on new flood zone maps for the Bay State.
| Mar 3, 2014
Injury-liability law responsible for higher construction insurance cost in New York
Construction contractors and developers in New York state face $3 billion more in costs and 667 more accidents per year because of a state law that holds builders solely liable for such accidents, according to a study commissioned by the New York Civil Justice Institute.
| Feb 28, 2014
GBI issues guide to help federal agencies meet sustainability mandates
The Green Building Initiative has released “The Guiding Principles Compliance for New Construction,” for federal buildings to help federal agencies meet sustainability mandates in the construction of new buildings.
| Feb 28, 2014
Steel Joist Institute standards open for review
The 2015 draft of the Steel Joist Institute’s “Single Joist Standard Specification for K-, LH-, and DLH-Series and Joist Girders” will be available for public review until May 31, 2014.
| Feb 28, 2014
Metcalf Construction wins key reversal from federal appeals court in Hawaii on military contract
Metcalf spent more than $76 million on a military construction project and sued to recoup costs.
