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Sustainably Developed Apartments Growing in Popularity

Sustainably Development Apartment

Digested from “Are Apartment Renters Willing to Pay More for Green Features?”
National Real Estate Investor (3/22/16) Anderson, Bendix

Recent surveys and data suggest that apartments offering bike rooms, “green” windows, water-saving appliances and other sustainable features are growing in popularity among apartment seekers.

People seem willing to pay higher rents to live in new buildings with environmentally friendly features. This is especially true among younger generations of renters. “Many of the millennial population expect the owner or manager of the property to implement as many of these environmentally conscious initiatives as possible,” said John Sebree, director of the national multihousing group with brokerage firm Marcus & Millichap.

Many colleges and universities have invested in sustainable housing projects, suggesting a potential new growth area for property owners and managers. One poll of college students found that 76 percent favored policies that support energy efficiency and 60 percent viewed protection of the environment as a high priority.

Walkability ties in with the concept of sustainable living, and some renters are willing to foot the cost of pricier rents to live in a green building that’s within walking distance to retail stores and other conveniences. A recent National Multifamily Housing Council survey on resident preferences found that respondents said they would pay nearly $33 more a month to reside in a green-certified building.

More than 40 percent of survey participants said to appeal to them apartment communities need to describe green features they used to develop their buildings on their websites.

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