Climate change is an existential crisis of our generation and needs joint efforts. And the housing market is no exception to that. The real estate industry is responsible for almost 39% of the total global emissions, and 11% of those emissions are generated by manufacturing materials used in buildings. Naturally, sustainable living is the need of the hour.
However, the future is not doom and gloom. People have started realizing the importance of sustainable living and taking the necessary steps. Especially in the real estate industry, investors are keen on committing their capital to sustainable housing projects. Key stakeholders like environmental architects, real estate developers, and finance professionals are working together to incorporate the aspect of sustainability in their new projects. Let’s delve deep into why investors are in favour of sustainable housing.
Why do Investors Support Sustainable Housing Projects?
Whether you call it favouring the collective consciousness of people or the possibility of lucrative returns, investors pretty much wholeheartedly endorse sustainable housing projects. And there are good reasons for it.
- Affordable and Realistic
For many investment professionals, sustainable real estate is the future of that industry, and they view it as affordable. It appeals to eco-conscious consumers, and as a result, they are heavily focused on developing sustainable structures using the net-zero method. Investors are also backing technology to make this dream a reality. Technological advancements are used in both the energy production and rainwater purification sectors. The other stakeholder of sustainable housing, finance professionals, plays an important role in limiting the total cost of ownership and operational costs. They can effectively promote sustainable development by increasing the efficiency of their report processing.
- Higher Resource efficiency and Low Operating Cost
Sustainable buildings offer the dual benefit of using energy efficiently and decreasing operational costs. As a result, investors can anticipate an increase in net operating income (NOI) and a boost in property value. In the long term, owning a sustainable building means lowered maintenance costs as the integration of technology increases the lifespan and durability of those buildings with a low need for replacement work.
- Future-proof Investment Portfolio
Real estate has always been favoured by investors when it comes to diversifying portfolios. As consumers shift towards sustainable consumption, buyers are willing to invest in homes with clean and green attributes. Besides, the housing market is now dominated by the older Millennials, and they seek housing projects that ensure eco-friendly aspects in almost every product and service they purchase. Thus, investing in sustainable real estate projects like Homz is suitable for investors.
Furthermore, investing in green buildings means investors will not have to sell the property at a discounted price or engage in expensive retrofitting work. Many renters actively seek greener buildings and want to move to more energy-efficient ones. Traditional buildings are more likely to cause something called “Sick Building Syndrome”, where occupants spend more time in building that hinders their health and manifests discomfort. On the other hand, green buildings provide a better indoor environment with improved air quality, enhancing productivity.
- Future Potential of Green Building Market
The global green building market will likely reach $653.41 billion by 2028. Sustainable buildings are the future of the real estate industry. Many countries, including the US, are actively endorsing sustainable housing projects and offering tax benefits and subsidies for them. Moreover, growing awareness among people regarding sustainable building is expected to boost the market in the near future.
Final Thought
Sustainable housing projects are not only beneficial from the investment point of view, but also it’s good for the environment. However, one should have a team of experts to guide you through the investment process.
Homz Fund is the first-ever national multi-family housing fund in the US. It is developing wellness-centric multi-family housing communities through its sister company Homz. Homz Fund offers an excellent opportunity to invest in some of the best real estate properties across the suburbs of the US. These properties entail a key aspect of sustainability and will be developed with a keen focus on reducing energy consumption and using eco-friendly materials. Thus, if you wish to invest in a sustainable community, Homz Fund is the way to go.
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