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
Modular Building | Mar 31, 2022
Rick Murdock’s dream multifamily housing factory
Modular housing leader Rick Murdock had a vision: Why not use robotic systems to automate the production of affordable modular housing? Now that vision is a reality.
Legislation | Mar 31, 2022
Bill in Washington State would fund seismic retrofits in schools
A bill recently passed by the Washington State Senate could unleash hundreds of millions of dollars for school seismic retrofits over several years.
Legislation | Mar 30, 2022
Wisconsin legislators expand the scope of interior design in the state
Legislators in Wisconsin passed a bill, quickly signed into law by the governor, that codifies holistic interior design legislation and significantly expands the scope of interior design in the state.
Legislation | Mar 28, 2022
LEED Platinum office tower faces millions in fines due to New York’s Local Law 97
One Bryant Park, also known as the Bank of America Tower, in Manhattan faces an estimated $2.4 million in annual fines when New York City’s York’s Local Law 97 goes into effect.
Codes and Standards | Mar 24, 2022
New York senate moves to speed up fossil fuel ban in new buildings
Lawmakers in the New York State Senate are backing a proposal to ban fossil fuels in new building construction three years sooner than a plan proposed by Gov. Kathy Hochul.
Codes and Standards | Mar 23, 2022
High office vacancies have cities rethinking downtown zoning
As record-high office vacancies persist in U.S. urban areas, cities are rethinking zoning policy.
Codes and Standards | Mar 22, 2022
Dept. of Energy awards $32 million for next-generation building retrofits
The U.S. Dept. of Energy has awarded a total of $32 million for more than 30 next-generation building retrofit projects that will dramatically improve affordable housing technologies, according to a DOE news release.
Legislation | Mar 18, 2022
New framework to help site community solar projects released
The Solar Energy Industries Association (SEIA) released a new report to aid policymakers in siting community solar projects.
Codes and Standards | Mar 17, 2022
Dept. of Energy seeks input on building-integrated photovoltaic systems
The U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) and Building Technologies Office (BTO) recently issued a request for information to gather input on technical and commercial challenges and opportunities for building-integrated photovoltaic (BIPV) systems.
Legislation | Mar 16, 2022
Weak federal commercial real estate rules will hamper seizing Russian assets
Lax disclosure regulations that have made the U.S. a global hot spot for money laundering via real estate holdings will make it difficult for officials to seize properties from Russian oligarchs.
