The untapped potential in multi family housing


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The untapped potential in multi family housing

  1. 1. The Untapped Potential in Multifamily Buildings Memphis & Shelby County Sustainability Summit June 26, 2013
  2. 2. The American Council for an Energy-Efficient Economy (ACEEE) Nonprofit 501(c)(3) dedicated to advancing energy efficiency through research and dissemination.  Established in 1980  Focus on end-use efficiency in industrial, building, utility, and transportation sectors  Local, state, and federal policy development, economic analysis, and behavioral programming  Knowledge sharing: conferences, publications, and working groups
  3. 3. Multifamily Energy Savings Project • Three-year project to improve the energy efficiency of multifamily housing nationwide • GOAL: Expand the number of utilities offering multifamily energy efficiency programs and increase spending and savings for these programs by at least 25% by the end of 2015 • Focus on building partnerships between the housing community, utilities, and state and local governments
  4. 4. Presentation Overview 1. The Energy Efficiency Opportunity in Multifamily Buildings 2. The Memphis Opportunity 3. Why Are Multifamily Buildings Untapped? 4. Realizing the Potential for Energy Savings
  5. 5. The Multifamily Efficiency Opportunity
  6. 6. The Multifamily Efficiency Opportunity The share of households living in multifamily buildings is rising. Source: U.S. Energy Information Administration, Residential Energy Consumption Survey;
  7. 7. The Multifamily Efficiency Opportunity 32.9% 41.7% 10.1% 12.8% 2.5% Composition of the Multifamily Housing Market 2-4 unit multifamily housing (10.5 M units) 5+ unit market rate rental (13.3 M units) 5+ unit subsidized rental (3.2 M units) 5+ unit owner-occupied (4.1 M units) 5+ unit public housing (0.8 M units)
  8. 8. At scale, comprehensive programs can save 30% of natural gas use and 15% of electricity use. Collectively, building owners and tenants spent almost $22 billion on energy in 2009, an average of $1,141 per household. The nationwide potential savings from multifamily energy efficiency are huge. • $3.4 billion per year in savings. The Multifamily Efficiency Opportunity Source: CNT Energy & ACEEE, Engaging as Partners: Multifamily Housing and Utilities (2012).
  9. 9. The Multifamily Efficiency Opportunity Source: Annual Potential Savings from Multifamily Buildings by State At 15% electricity and 30% natural gas efficiency improvement Tennessee Savings = .7% of total annual residential electricity & natural gas consumption
  10. 10. The Multifamily Efficiency Opportunity Source: 2011 American Community Survey, 3-Year Estimates
  11. 11. The Multifamily Efficiency Opportunity in Memphis Source: 2011 American Community Survey, 3-Year Estimates
  12. 12. The Multifamily Efficiency Opportunity in Memphis 97% multifamily residents in Memphis rent. • Only 7% of renters have their utilities included in rent – creating a split incentive between owners and tenants. Many multifamily residents in Memphis are low income. • 23% (29,534) of multifamily units in the Memphis metro are publicly owned or receiving federal assistance. • That’s the highest percentage of any of the 50 metro areas in our assessment.
  13. 13. The Multifamily Efficiency Opportunity in Memphis Nearly half of multifamily buildings built before 1980
  14. 14. Source: Gary Pivo, Energy Efficiency and its Relationship to Household Income in Multifamily Rental Housing (2012). The energy efficiency potential of multifamily buildings, especially rental properties, remains largely untapped. • Energy expenditures per square foot in rented multifamily apartments are 37% higher than in owner- occupied multifamily homes and 76% higher than in owner‐occupied single-family homes. • Energy efficiency measures like high efficiency appliances, HVAC systems, and insulation are far less likely to be found in multifamily rentals as compared to any other type of housing.
  15. 15. The Untapped Energy Savings in Multifamily Buildings • Multifamily buildings are often overlooked by traditional energy efficiency programs. • 40% of the 50 metropolitan areas analyzed are not served by multifamily energy efficiency programs (including Memphis & Nashville). Source: ACEEE, Scaling Up Multifamily Energy Efficiency Programs: A Metropolitan Area Assessment (2013). Major Metropolitan Areas With One or More Multifamily Energy Efficiency Programs
  16. 16. The Untapped Energy Savings in Multifamily Buildings Barriers Faced By Building Owners: • Split incentives • Energy efficiency competes for investment dollars with: o maintenance o tax and water bill payments o landscaping and security upgrades o pest control • Financing needed • Unpredictable payoff • Confusion about available programs & incentives
  17. 17. Realizing the Potential for Energy Savings Successful multifamily retrofit programs help to overcome these barriers by providing: • technical assistance • financing • qualified contractors • financial incentives
  18. 18. Realizing the Potential for Energy Savings Expand utility customer-funded programs to target multifamily buildings, or provide streamlined information and application process for existing incentives. Residential? Commercial? Is this building…
  19. 19. Realizing the Potential for Energy Savings Provide building owners access to whole-building energy usage data to enable benchmarking and energy performance tracking. Include large multifamily buildings in energy benchmarking & disclosure policies. • Current policies that include multifamily buildings: Austin, Boston, DC, New York, Seattle, & Portland* *policy under development
  20. 20. Realizing the Potential for Energy Savings Build partnerships to develop and market programs with: • Electric & gas utility energy efficiency programs • Building owners and property management companies • Contractors • Housing advocates and intermediaries • Financial institutions and housing finance agencies • Federal, state, and local agencies
  21. 21. Example : Chicago-area program has upgraded over 10,000 units. Joint project of CNT Energy and the Community Investment Corporation Provides building owners: • Comprehensive assessment • Information about utility incentives • Low-cost financing • Construction management • Quality control • Post-retrofit savings analysis 21
  22. 22. Remember: Multifamily retrofits are not just about saving energy. Energy-efficient buildings = more comfortable, affordable homes Building owners save on operations & maintenance, and reduce turn-over and vacancy rates. Partnerships between utilities, housing orgs, and governments help to support local workforce development. 22
  23. 23. Thank You! Questions? Contact: Kate Johnson (202) 507-4039 23