Energy-Saving Techniques in Multifamily

Every year since 1970, on April 22, the world is celebrating Earth Day. The global movement has grown into a meaningful platform for environmental awareness, uniting people in their shared commitment to sustainability. This year’s theme is “Our Power, Our Planet” and it serves as a reminder that the choices we make today will shape the future of generations to come.

AI Generated image depicting a green planet with a city on it — *Image generated with AI. Image by K silver/stock.adobe.com*

From addressing climate change and biodiversity loss to promoting renewable energy and sustainable practices, Earth Day is a rallying cry for individuals, communities, businesses and governments to take meaningful steps toward preserving our planet.

Multi-Housing News asked professionals from the multifamily industry to share details about the energy-saving techniques they use or plan to implement to positively change the lives of their residents, while also improving the health of our planet overall.

Starting point: assessing building performance

The first step in improving the energy efficiency of a multifamily building is understanding how its envelope and systems are performing. With energy efficiency codes only becoming stricter across the country every year, developers and property owners are urged to invest in high-efficiency HVAC systems, electrification, better insulation, LED lighting, smart energy management systems and other energy-saving technologies that make properties more efficient and sustainable in the long term.

“Many communities start by conducting energy audits or assessments to identify inefficiencies in HVAC, lighting, insulation and building controls,” said Breana Wheeler, director of operations at BREEAM U.S., particularly because these systems have a direct impact on both energy consumption and residents’ experience.

Benchmarking is another way to understand how properties are performing, according to Thomas Stanchak, managing director of sustainability at Stoneweg US, a real estate investment firm with a focus on sustainable multifamily assets. It’s the foundation that helps make a data-driven investment plan. Without it, even well-intentioned upgrades can miss the mark.

“You risk putting dollars in the wrong places and falling short on energy savings and financial return. The math matters,” Stanchak said.

Bright Power EnergyScoreCard monitors energy usage
When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power
Adding a solar photovoltaic system and solar battery storage solution can provide significant energy efficiency savings.
Bright Power team member updating ventilation equipment on a roof in NYC.
Bright Power EnergyScoreCard monitors energy usage
When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power

When performing energy audits and electrification feasibility studies, Bright Power evaluates the performance of existing fossil fuels-based equipment, such as the building’s boiler. All images courtesy of Bright Power

Sealing the building

Before investing in actual energy upgrades, it’s crucial to address the building envelope—insulation, windows, roof—to identify areas for improvements, according to Theresa Backhus from the Institute for Market Transformation. If the building envelope is leaking, even the most advanced heat pumps and control systems will struggle to maintain comfortable temperatures, leading to higher energy use and increased strain on electrical infrastructure.

Duct sealing in older buildings represents one of the most cost-effective energy-efficiency measures, Thomas Holmes, northeast commercial business manager at Aeroseal, told MHN. “By first sealing ductwork and reducing air leakage in walls, ceilings and floors, building operators are seeing above 30 percent reductions in HVAC energy use, often before replacing a single piece of equipment,” he noted. This also means that smaller, more affordable HVAC systems can be installed during upgrades, leading to additional long-term savings.

While at it, property owners can also invest in ventilation upgrades, such as energy recovery ventilators and demand-controlled ventilation, which ensure that buildings maintain healthy indoor air quality without excessive energy waste.

Energy-saving techniques that work

Once the building’s envelope has been attended to, various energy-saving inclusions can be implemented. The most common one is LED retrofits, which is a low-cost, high-impact energy-saving upgrade. Lighting accounted for 26 percent of an apartment’s energy consumption as of April 2020, according to the U.S. Department of Energy, with LED lighting driving down operating costs while also improving the building’s aesthetics.

Meanwhile, space heating accounts for 56 percent of electricity consumption in multifamily buildings, data from the Joint Center for Housing Studies shows. Though somewhat more expensive, HVAC upgrades make a big difference.

“While residents typically cover these costs, improving HVAC efficiency benefits both parties—lowering expenses for residents, reducing maintenance costs for operators—enhancing the resident experience by preventing system failures and reducing the building’s environmental footprint,” said Sean Miller, chief revenue officer with service provider Lessen.

HVAC system tune-ups can be difficult in multifamily buildings with unitized systems, but it’s important to coordinate with residents to check them. “Lowest-hanging fruit includes ensuring air filters are replaced, coolant is not leaking, seasonal tune-ups are performed,” according to Backhus.

Another energy-saving technique comes from ENERGY STAR. “We use ENERGY STAR Portfolio Manager for every location in our portfolio, it’s an incredible tool,” said Stanchak. “That alone removes most barriers for companies that are just getting started. You just need to invest a little time and be open to learning something new.” ENERGY STAR Portfolio Manager is free of charge and has been available from the Environmental Protection Agency for 30 years. In addition, it comes with no cost for training and support.

Meanwhile, occupancy sensors are also gaining popularity, as they help reduce energy usage when a unit or space is empty. Additionally, smart thermostats that can be tailored around when the space is occupied can provide residents with savings of 10 percent or greater, said Miller.

The vertical closed-loop geoexchange system at The Riverie will reduce annual carbon emissions from heating and cooling by 53 percent compared with typical residential systems.
Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease
Clippership Wharf was completed in March 2021 and sets a new standard for resilient and sustainable waterfront development.
Lendlease recently topped out Habitat, a 260-unit mixed-use project in Los Angeles that is expected to be net zero carbon in construction and operations. It will include an integrated 125kW solar array, 64 dedicated electric vehicle parking spots, natural ventilation and lower-carbon concrete.
Slated for completion in 2026, Habitat will include 260 apartments, a 253,000-square-foot office building, and 2,900 square feet of retail and restaurant space. Lendlease is aiming to make the commercial building the first new-construction creative office development in Los Angeles to achieve LEED Platinum.
Developed by Lendlease, The Riverie is an 834-unit multifamily development in Brooklyn, along the waterfront in Greenpoint. A third of the project’s apartments are designated as affordable housing under the Affordable New York Housing Program.
The vertical closed-loop geoexchange system at The Riverie will reduce annual carbon emissions from heating and cooling by 53 percent compared with typical residential systems.
Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease

Lendlease included rooftop solar panels at Clippership Wharf, a 478-residence community in Boston. All images courtesy of Lendlease

Meanwhile, fine-tuning building equipment operation through retro-commissioning is another highly effective strategy for reducing energy waste and improving overall system performance, according to Monica Beall, director of sustainability with Lendlease. Other emerging solutions include automation, predictive maintenance technologies, advanced air sealing and insulation products, and integrated energy management systems. Onsite generation like solar and battery storage is also gaining ground.

Some companies even offer residents the opportunity to participate in community solar programs, while also sourcing renewable electricity for its properties. “Every property in our portfolio is enrolled in green tariff programs to further support clean energy adoption,” disclosed Beall.

Community solar can be accessed both as a community solar host and as a community solar subscriber. While it provides multifamily properties with a way to access the financial benefits of clean energy even without suitable roof space, “onsite solutions often offer even greater economic advantages, where feasible,” shared Gabe Phillips, CEO & founder of Catalyst Power.

While interest in community solar is on the rise, adoption is lagging due to high upfront costs and property-specific constraints. But as panel technology advances—becoming more compact, resilient and cost-effective—community solar will likely become a more viable long-term investment, particularly in Sun Belt states, believes Miller. Benefits include lower energy costs, increased property value and improved ESG performance, but this method remains “very much incentive-driven to be realistically included in a project,” according to Brad Lutz, director of multifamily design for Baker Barrios Architects.

Saving water saves energy

To save energy, managing water usage is also critical—smart hot water controls regulate consumption while ensuring residents always have hot water when needed, explained Sarah Merricks, co-founder & chief strategy officer at Global Network for Zero. Detecting leaks early can help save both water and money, while low-flow fixtures, drought-tolerant plants and weather-monitoring irrigation systems contribute to water conservation efforts both in individual units and within the broader property.

Optima Verdana features a private courtyard in the heart of the building, which serves as a lush oasis for residents and features 7’ high garden walls, verdant trees, restful seating and more than 1,500 light-filled square feet. Image by Bill Timmerman via Optima Inc.
Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.
The community is being built to the latest energy-efficient and sustainable building standards by integrating solar panels, high-efficiency mechanical systems, underground parking to mitigate the heat-island effect and Optima’s signature Vertical Landscaping System, which provides solar shading, evaporative cooling and improved stormwater management. Image courtesy of Optima Inc.
The community will be the first project in Arizona to be built under both the new International Green Construction Code and the new International Energy Conservation Code, which provides for an additional 9 percent energy savings over the previous code. Image courtesy of Optima Inc.
Optima Verdana is a 100-unit community in Wilmette, Ill.. For its construction, the developers utilized green concrete, all-electric VRF heating and cooling systems, induction cooktops and outdoor electric grills to improve efficiency and reduce emissions. Image by Bill Timmerman via Optima Inc.
Residents responded positively to these enhancements, particularly the shift to induction cooking, which offers higher performance and greater temperature control than gas counterparts. Image by Bill Timmerman via Optima Inc.
Optima Verdana features a private courtyard in the heart of the building, which serves as a lush oasis for residents and features 7’ high garden walls, verdant trees, restful seating and more than 1,500 light-filled square feet. Image by Bill Timmerman via Optima Inc.
Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.

Optima McDowell Mountain, a multi-phase community currently under construction in Scottsdale, Ariz., will feature the largest private rainwater harvesting system in the U.S. to significantly reduce water consumption. Image courtesy of Optima Inc.

For Stoneweg, attention to water conservation and hot water energy efficiency is paying off, Stanchak told MHN. Hot water heating accounts for nearly 20 percent of total energy use across the company’s portfolio. Last year, Stoneweg completed several water conservation projects at Texas properties with central natural gas-powered boilers and saw a roughly 9 percent drop in natural gas consumption in just the first few months.

“Our secret to success is keeping top of mind that efficiency isn’t about using less, it’s about using the right amount,” he said.

Heat pumps are also gaining popularity, according to Caitlin Rood, senior national account manager at Bright Power. They are more efficient than other home climate-control and water heating systems because they absorb and move ambient heat rather than burning fuel or using energy-hungry electric resistance to generate it.

“Compared to the 80 to 95 percent efficiency we see with gas equipment, heat pumps operate at 300 to 400 percent efficiency, which makes electrification appealing,” Rood said, adding that heat pumps can render incredible potential savings—depending on the cost of electricity and the cost of gas in a given area—and a significant reduction on environmental impact.

Multifamily’s energy-saving drivers

Cost reduction remains the most important driver of any decision made by property owners and operators, especially with high volatility in energy costs. In dense urban areas, the adoption of sustainable standards and the implementation of local building performance laws, such as NYC’s Local Law 97 and BERDO, play a big role in shaping how owners and managers think about and approach energy efficiency. Building performance standards are spreading across the country, setting clear targets for energy reduction, and direct incentives from local utilities have proven to be an effective motivator for property owners to invest in efficiency upgrades, Beall mentioned.

But motivations have become more sophisticated, with resilience emerging as a primary driver, according to Phillips. The ability to maintain critical operations during power outages is increasingly valuable once grid disruptions become more common.

Property differentiation is another factor that makes owners and operators invest in energy-saving items. Buildings with visible sustainability features and lower utility costs attract both renters and investors. Furthermore, these features are part of the way many owners are responding to ESG commitments from their capital partners or preparing for evolving regulatory requirements.

Multifamily’s energy-saving headwinds

Cost drives the adoption of energy-saving techniques, and cost is the main hurdle to overcome in improving energy efficiency at multifamily properties, according to Merricks, as major retrofits can be expensive upfront. In addition, there is also hesitation around new technology and concerns about disrupting residents, which steers many property owners to opt for smaller upgrades instead of full-scale efficiency overhauls.

Another major challenge is that with multifamily residents often controlling their own utilities, it can make it difficult for owners to gather whole-building energy data and measure the impact of energy efficiency initiatives at their properties.

“In markets like California, where whole-building energy data disclosure is mandated, owners have a clearer picture of the impact of efficiency measures across an entire asset,” said Wheeler. “With this in mind, expanding mandates around data access in more markets and municipalities would be a valuable step forward.”

A similar challenge is linked to upgrading apartment interiors—especially for things like windows or lighting. It’s difficult to implement changes beyond common areas, according to Phillips.

Grid capacity can also be an impediment to more sustainable buildings, stated Rood. “Not all buildings have enough electric capacity to host electrification, and there is not enough capacity on the grid for mass electrification.” For now, California is leading the country when it comes to electrification because it offers substantial incentives in multifamily affordable housing that help offset these expenses. Catching up are Boston, New York City, D.C. and Denver, as each have adopted performance standards that are forcing buildings to electrify.

Achieving improved energy efficiency requires sustained focus, and “that’s going to be the real challenge for much of the industry,” believes Stanchak. “Most headwinds aren’t technical, they’re self-imposed. Lack of planning, lack of prioritization and fear—these are the bigger obstacles.”

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