What is MultifamilyG?

MultiFamilyG is a website dedicated to educating multifamily building managers, owners and investors about practical green technologies that can reduce operating costs and increase the property’s allure to residents.  Energy efficiency, green certified design, and waste reduction are hot consumer topics and can also save you money if done properly.  Whether you are considering the construction of a new building or trying to retrofit an old one, MultifamilyG provides you with the tools and information you need to reduce energy costs and green your property.  Use our free online green self-check, learn about solar power, fuel cells, and energy reduction techniques, and request free advice from energy experts.  Go green and get the “G-factor” to get ahead!

First, what are multifamily buildings?

Multifamily residential buildings are a type of housing where multiple separate housing units for residential inhabitants are contained within one building.  The most basic example of a multifamily building is an apartment building but another common example would be a condominium complex where the units are owned individually rather than leased from a single apartment building owner.

Of the 106 million housing units in the U.S., approximately 19 million, or 18%, are multi-family buildings. Multifamily housing, however, is not spread evenly across the country, rather it is highly concentrated. 10 states account for almost 64% of all multifamily housing with the top five states (California, Florida, Illinois, New York and Texas) accounting for 49% of the total.*   Regionally, the Northeast has the highest concentration of multi-family buildings with 28.1 percent of all U.S. multi-family housing.*

As important as the number of multifamily buildings in the U.S., is the age of these buildings. Approximately 85% of rental housing buildings were built prior to 1990 and 41% of rental housing buildings were built prior to 1970.  Why is this important?  The age of multifamily buildings is directly related to their energy efficiency.   A study by the Joint Center for Housing Studies at Harvard University showed that, on average all housing built in the 1990s was more efficient than housing built in previous decades.  With the vast majority of multi-family buildings constructed prior to 1990, there exists tremendous opportunity for energy efficient savings.*

Second, why do multifamily buildings represent an opportunity for energy efficient savings?

Multifamily buildings represent a significant opportunity for major energy savings for a number of reasons. First, as discussed above, there are almost 20 million multifamily buildings in the U.S. An overwhelming majority of those buildings were built prior to 1990 when energy efficiency standards were not as prevalent or strong.  On a purely macro level, the supply of multifamily buildings with inefficient energy infrastructures is incredibly large. The availability of multifamily buildings alone presents a tremendous opportunity for companies specializing in energy efficient retrofitting to turn older, energy inefficient buildings into energy efficient/saving complexes.

On an equally immediate basis, multifamily buildings have operational elements that can translate into larger savings than a single family home.  What do we mean by that?  Imagine the energy required to support an apartment complex.  From the energy necessary to light common areas, laundry services and the HVAC units, the energy draw is significant.  Energy use is even higher if all the leases in the complex include utilities or if access to common areas is provided 24 hours a day.  Between the availability of paid utilities and tenant access to public spaces, energy is essentially being used all day- a stark contrast to a single home where the owner can control and customize all energy use on the property.

What does this huge energy burden mean for the building owner?  It means higher costs simply to operate the apartment building.  If these energy costs are not passed on to the renters, they can cut into the owner’s profit substantially.  And, what does it mean for the renter?   It means higher rent if the building owner decides to pass on his building utility expenses to his renters.  And since renters, on average, tend to have less disposable income than home owners, these high utility costs just to operate a building may price a renter out of an apartment.*  However, if those common areas or the individual units were either built or retrofitted with energy saving devices, such as LED’s or EnergyStar rated equipment, the owner’s operating expenses go down and either his profits go up or he can lower his rent enough to ensure that his building is 100% tenant occupied thus maximizing his revenue.   As you can see, the economics of energy savings are very basic and very compelling to ensure that a multifamily building is a fundamentally sound investment.

Finally, what is the goal of MultiFamilyG?

The goal of MultiFamilyG is to provide building owners and renters the tools and information they need to implement green technologies into their living space.  Whether you considering the construction of a new building or trying to retrofit an old building, there are many energy efficient solutions that can save you money.  From installing energy efficient appliances and lights, to more efficient design materials, to better recycling and composting methods, the goal of MultiFamilyG is to provide you with the tools and information to begin the process of incorporating these solutions into your multifamily building.

Article written by Clean Energy Experts, copy edited by Jayme Elliott

*Source: “Energy Efficiency in Multi-Family Housing A Profile and Analysis,” by Matthew Brown and Mark Wolfe, Energy Programs Consortium, June 2007.