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Will Renters Pay More For An Energy Efficient Pad?

December 15, 2016 12:39 am

You might think that renters across the U.S. would be most concerned about making their monthly rent payments. But we were surprised to learn that more of today's renters are worried about their utility bills than their rent.

The latest Freddie Mac research shows more renters are worried about rising utility bills than rising rents, and nearly half of the renters surveyed say they are willing to pay more for rentals with cost-saving water and energy features.

A large majority (88 percent) agreed multifamily properties with green energy, and water-saving features would help reduce their utility bills, with 84 percent saying green properties are generally better places to live.
Nearly half (47 percent) say they are willing to pay more for an environmentally-friendly rental. Renters in the South (52 percent) and West (49 percent) were more likely to say they would pay more than those in the Midwest (39 percent) or Northeast (44 percent).

David Brickman, executive vice president and head of Freddie Mac's Multifamily business says it is striking that so many are apparently willing to pay more for properties with features they believe will reduce their utility bills.

Other significant findings from Freddie Mac's new research show:
  • Most renters say the rental experience is satisfying and affordable.
  • More than half expect to rent their new home.
  • Down Payments are ranked below other savings goals.
  • Concern about household finances is rising.
By generation, Gen-Xers' showed the biggest increase in concern about household financial situations over the past year (53 percent to 70 percent), followed by Millennials (64 percent to 68 percent) and Baby Boomers (61 percent to 62 percent).

Overall, the percentage of renters who say they have enough money to go beyond each payday fell from 41 percent to 34 percent over the past year. The percentage of renters who say they either live payday to payday, or don't have enough for basics between paychecks, rose from 59 percent to 66 percent.

Published with permission from RISMedia.