|Why Green Multi-Family Construction Is Booming
In case you haven’t heard, multi-family construction is at an all-time high right now! And that’s supposed to remain constant given current demographic trends and the fact that not everybody can afford the homeownership route at the moment. But what’s also trending right now is “green” housing.
During the last housing boom in 2005, getting builders to build “green” wasn’t the easiest thing to do given they just wanted to build them fast to sell them fast and didn’t want to change up their already successful formula. But this time around, things are way different. Currently, multifamily green certifications are increasing, making a few wonder what’s changed? Here are five reasons why builders are going green:
It’s a differentiation factor
Although green certification doesn’t really mean higher rents, it does differentiate a building from others like it in cities, where renters care about living a “green” life. If more and more builders catch on to this trend, they’ll help renters feel as if they’re doing their part to minimize their carbon footprint by living in a green apartment complex, while still enhancing their living quarters.
Investors want to put money into projects that are green and the NGBS certification is just up their ally. These investors know that they are certain advantages to putting money into green certified buildings, which have been known to outperform non-green buildings in things like rental rates, sale price and more.
Being a green certified building lends you a certain reputation in the industry and within the investment community that really matters. As an environmental leader, your reputation will skyrocket and make the company be seen in a positive light among peers and the community.
Energy price volatility
Some builders and developers want a green building to mitigate any future risk of increased rent rates and increased building values. But others care about energy price volatility. Utility costs is one of the biggest controllable costs for apartments, so improving the overall performance of the building while lowering utility costs can increase operating income and have a huge impact on the bottom line.
Being green has its perks, especially in the construction industry. With NGBS certification, builders can see reduced permit fees, tax credits, density bonuses, expedited permitting and so much more!