NEW YORK, NY – Green construction is rapidly gaining traction among both single family and multifamily home builders, according to new research published in the Green Multifamily and Single Family Homes 2017 SmartMarket Brief.

The latest in a series of studies conducted by Dodge Data & Analytics in partnership with the National Association of Home Builders (NAHB), the study shows that green homes are continuing to gain market share.

At least one third of single family and multifamily builders who were surveyed said that green building is a significant part of their overall activity (more than 60 percent of their portfolio). By 2022, this number should increase to nearly one half in both the single family and multifamily sectors. Within this group, nearly 30 percent of multifamily builders fall into the category of “dedicated” green builders (more than 90 percent of their portfolio). On the single family side, the percentage of “dedicated” green builders is nearly 20 percent, but that share is expected to grow sizably by 2022.

“These findings show that green building has become an established part of the residential construction landscape,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “It is no longer a niche business; our members recognize the value of building green and are incorporating these elements into their standard business practices.”  

Increasing energy efficiency continues to be the most common method of improving the performance of a green home, followed by making a healthy indoor living environment.

“As consumers become more familiar with the impact that their homes can have on their health and well-being, we wouldn’t be surprised to see the influence of this factor continue to grow,” said Steve Jones, Dodge’s Senior Director of Industry Insights Research. “Homes are following the larger trend that Dodge has been tracking across commercial and institutional sectors for healthier buildings to become an increasingly vital part of being sustainable.”

The report also found that a considerable number of builders are developing net zero homes or plot to build net zero homes in the near future. Among those surveyed, 29 percent of single family home builders have built a net zero home in the past two years, and 44 percent expect to do so in the next two years. Builders see increased customer demand and a competitive advantage as the top two drivers to develop net zero homes.

Another reason for the rise in net zero homes is the increasing use of renewable technologies, especially solar photovoltaic panels. In two years, the percentage of builders who used these panels increased from 19 to 23 percent. Nearly half (43 percent) of the builders surveyed expect to use this technology in the future.

Other SmartMarket findings suggest the single family green home market is maturing. For one, the report found that home builders are less concerned about higher start-up costs than in previous studies. There was also a decline among people who reckon consumers will not pay additional costs for green building. Finally, between one half and two thirds of respondents say seven different drivers are pushing them to build green, instead of one or two drivers as in the past. In fact, these top drivers, selected by between 64 and 57 percent of single family builders, include customer demand; greater availability and affordability of green products; the prospect of producing a higher quality home; appraisers recognizing greater value in green homes; government or utility incentives; and changes in codes, ordinances and regulations.

Multifamily builders see government or utility incentives; customer demand; and changes in codes, ordinances, and regulations as the top drivers for future green building activity. With respect to green building obstacles, multifamily builders are most concerned about the costs associated with green; higher start-up costs; and the unwillingness of consumers to pay more for green construction. Single family builders agree about the challenge of consumers not being willing to pay, the top obstacle for them.

The report is available for free download here. 

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OVERLAND PARK, KS – Preferred Apartment Communities announced the acquisition of a 260-unit Class A multifamily community in Overland Park, Kansas constructed in 2016 called Adara Overland Park. 

“Adara is one of the premier Class A multifamily communities located in a strong and growing submarket and features high quality interior finishes,” said Jeff Sherman, the Company’s Executive Vice President and Director of Multi-Family Investments. 

Adara offers expansive 1, 2, and 3 bedroom luxury apartment homes with attached and detached garages available. Each apartment home features stainless steel appliances, unique granite kitchen counter tops, full-sized washer and dryer, a garden tub or custom walk-in shower, large walk-in closets, pre-wired intrusion alarms, modern gray crown molding, stylish track and pendant lighting, 2″ plantation style blinds, and ceiling fans with lighting in bedrooms and living rooms.

Mr. Sherman added, “With this acquisition, we continue to add to our growing portfolio of best-in-class new multifamily communities.”

PAC bought this community through a wholly-owned subsidiary and financed the acquisition utilizing a non-recourse first mortgage loan from Freddie Mac originated by KeyBank National Association.  The first mortgage loan is approximately $31.85 million, bears interest at a fixed rate of 3.9% per annum, matures on April 1, 2028 and amortizes based on a 30-year schedule. 

There are no loan guaranties provided by PAC or our operating partnership.

Preferred Apartment Communities was formed primarily to buy and operate multifamily properties in select targeted markets throughout the United States.  As part of its business strategy, they enter into forward buy contracts or buy options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. 

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PHILADELPHIA, PA – Houston-based real estate developer, Hanover Company, has just opened its latest luxury residential apartments at the corner of North Broad and Callowhill. Hanover North Broad boasts many unique features including approximately 17,000 sq. feet of retail space below its residential quarters.

Hanover North Broad is now leasing 339 studio, one-, and two-bedroom apartments, which feature Hanover’s signature design and amenities. The company is confident its designer features and exclusive amenities, along with the complex’s perfect proximity to the SEPTA, downtown parks, and cultural landmarks in the area will attract many new residents.

Hanover Company’s Adam Harbin says, “The ability to walk to Center City’s growing employment centers, including both Comcast Towers, and the cultural attractions of the Museum District and Fairmount Park, give Hanover North Broad a uniquely compelling location, and the product will be among the best in the City.” Residents delight in walking distance to the city’s historic theatres and newly opened restaurants and cafes in the neighborhood. Some remarkable features include the following:

Residents’ clubhouse which houses a private gym, lounge, and media room

Landscaped courtyards with firepit, grilling and dining areas, and Bocce Ball court

Designer kitchens featuring stainless steel appliances and granite countertops

Luxury finishes such as frameless cabinetry, expansive windows, and 9’6” soaring ceilings

Hanover Company, located in Houston, Texas, stands among the most active private real estate companies in the United States, specializing in the development of high quality multi-family residential properties across the nation. To date, Hanover’s portfolio totals more than 52,000 units across the country and over $10.5 billion in project costs.

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