A new study reveals just how much renters will pay for environmentally friendly features.
Consumers are becoming more environmentally conscious, even when it comes to the home they decide to rent. A new survey from the National Multifamily Housing council has found that not only do renters prefer apartments with sustainable design features, they are also willing to pay more for them.
Multifamily builders have been putting more focus on environmental friendliness in new construction for years, but much of that is due to regulation rather than market demand. Many of the latest building codes require that new apartments include energy efficient features such as additional insulation and “green” windows. New construction buildings will often seek a LEED certification, which scores the building on its energy efficiency and sustainable design. The NMHC survey found that renters are willing to pay an extra $31/month to live in a building that includes “sustainable/green initiatives.”
Sustainable design is related to more than just the building’s construction. A building’s “walk-score” – the proximity to transit or amenities – is also heavily weighted by consumers. A study by the data firm, Axiometrics, found that sub-markets with the highest walk-scores in the area tend to have the highest average rent per unit.
Based on the direction consumer trends have been going, it may be no surprise that renters are revealing a preference for apartments buildings with sustainable design features and amenities. Outfitting your rental property with environmentally friendly features is not only great for the planet, but also great for renters and your rental income!
I’m not surprised by this. The apartment community that I’ve lived in for the past few years doesn’t offer recycling services at all. Residents are expected to either recycle their own goods or just throw them in the trash with everything else. That’s hardly a good thing for the environment and I’d gladly pay a few extra bucks a month for recycling services.
The community that I previously lived in offered recycling services and swapped out the pool’s electric heater for a solar heating system. The rents there were a bit higher, but people gladly paid them.
People pay without complaining when they consider it’s worth it, and seems like thats what happened there.
This is when you start to really come to a Rubicon. Is it worth that green feeling to shell out the extra money. I guess it all depends on the person and the situation.
I agree with you. It depends on the tenant to decisive to these terms of paying more for a greener place. Maybe if it helps to improve the health of the community, I will gladly be decisive to pay more money.
In a way, I don’t find this fact surprising. For example, I know that green hosting has become massively popular and profitable, despite the higher cost, so it serves to reason other environmental niches would do the same.
Finally, as with green hosting and organic farming, the demand for more wholesome stuff can provide jobs for many who otherwise might have a tough time.
Yeah, many peolle would like to pay for a greener way of living, it is good for the environment and community health. If the developer or administration of a rental subdivision or condominium are concerned for its tenants, a step up for greener home will encourage the tenants to live cleaner and greener.