The Investor’s Advantage
Investors considering purchasing an ERTH360 home will enjoy many unique benefits.
Investors considering purchasing an ERTH360 home will enjoy many unique benefits.
Homes designed to enhance resident wellness, can command higher rent and improve your ROI, as evidenced by the following.
In a recent survey, MIT’s Real Estate Innovation Lab found that certified and registered “healthy buildings” command rents of 4-7.7% more per square foot than buildings without this distinction. 21
According to a 10-year analysis of commercial real estate company Bentall Kennedy’s historical data, U.S. LEED-certified projects command 3.7% more in rent and have 4% higher occupancy rates than noncertified buildings, Commercial Property Executive reported. The analysis also found that ENERGY STAR-certified buildings can collect 2.7% more in rent and obtain 9.5% higher occupancies. 22
Freddie Mac National Green Multifamily & Single Family Rental Survey 2021 found 63% of renters willing to pay over 3% more for sustainable rental units. 23
Global property agent, Knight Frank, has gone as far as creating its own price model to calculate the contribution of green ratings. In central London it showed a 13% premium on rents and 10.5% on sales prices on BREEAM outstanding- and excellent-rated buildings. 24
Tenants are attracted to comfort, lower utility bills, health benefits, and reduced environmental impact. This can result in lower turnover.
Homes should remain attractive as healthier and more energy-efficient features continue to grow in importance among buyers and tenants. These homes may also qualify for more financing or better terms.
Homes can garner higher sales prices due to demand, savings, and lower cap rates from reliable income streams. In the largest national study to date, economists from the government-backed enterprise Freddie Mac found a 2.7% average sales price premium for rated energy-efficient single-family homes, with more efficient homes selling for a 3-5% premium compared to less efficient homes.25 26
