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!