November 22nd, 2016
Multi-Family Housing Trend: Rise in Utility Costs Worries Renters
Freddie Mac in a recent survey found that renters of multifamily properties are increasingly worried about the continuous rise in utility costs than a rise in rent. The survey revealed that the majority of renters surveyed have shown interest in paying more for rentals with cost-saving water and energy features. Most of the renters are worried about their financial status as they prefer saving for emergencies than on down payments for a home.
70% of the renters surveyed expressed their concern regarding rising utility bills. 63% of them are worried about the increasing rent. Almost 74% were greatly moved as the rise in utility expenses would impact the household expenditure. 88% or the majority expressed their support for multifamily properties which feature energy-and-water-saving options. That way they can cut down their utility expenses.
The survey also showed that most of the renters are ready to reside at green properties for a variety of reasons; including being socially responsible and keeping utility costs down. The survey which took place in September involved 1362 renters of which most of them responded positively about the current rent structure. However, comparing with the previous surveys show that multifamily property residents who support renting than owning fell from 69% in January, 2016 to 65% in September, 2016.
Based on the survey and the current multifamily trend of going green, shifting to green is not only smart, it will soon become a staple when it comes to the types of amenities renters will expect.