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 | Feb 23, 2021
ASHRAE Epidemic Task Force releases updated Building Readiness Guide
Includes flush calculations to reduce time and energy to clear contaminants between occupancy periods.
Codes and Standards | Feb 22, 2021
Preservation of Affordable Housing develops climate resilience strategy
Includes backup power for resident and staff “area of refuge”.
Codes and Standards | Feb 18, 2021
Construction industry moves toward comprehensive U.S. BIM standard
NIBS hosts roundtable to create coordinated program to advance collaboration.
Codes and Standards | Feb 17, 2021
Construction on international sports venues is ripe for corruption
Poor planning, complex contracting, a lack of accountability and high levels of collusion to blame.
Codes and Standards | Feb 16, 2021
Feds may fund removal of some urban highways
Senate bill proposes pilot program to reknit communities.
Codes and Standards | Feb 16, 2021
Bechtel joins international heat resilience organization
Experience designing resilience standards to aid effort to protect communities from extreme heat.
Codes and Standards | Feb 10, 2021
More than two-thirds of construction companies say COVID-19 has not impacted their ESOP
Half of survey respondents say 2020 project profitability decreased due to pandemic.
Codes and Standards | Feb 9, 2021
New Jersey approves new electric vehicle-ready home requirement
Homebuyers must be given option for charging station on new construction.
Codes and Standards | Feb 9, 2021
New California law removes barriers to residential development
Measure removes restrictions for ADUs in urban areas and master planned communities.
Codes and Standards | Feb 8, 2021
Alliance yields more accurate data for rating and certifying systems of construction materials
Crosswalk API offers trusted format to specify and procure healthier products.