WEBINAR SERIES. Southeast Multifamily Market Assessment. July 21, Southeast Energy Efficiency Alliance

Transcription

1 WEBINAR SERIES Southeast Multifamily Market Assessment July 21,

2 SEEA Serves the Southeast The Southeast Energy Efficiency Alliance (SEEA) promotes energy efficiency as a catalyst for economic growth, workforce development and energy security. We do this through collaborative public policy, thought leadership, outreach programs, and technical advisory activities. Regional Energy Efficiency Organization Eleven-state footprint Non-profit, non-partisan 2

3 Upcoming Webinars Utility-Administered Low-Income Programs in the Southeast: A Landscape Assessment July 28th, 2016 Developing Consistent EM&V and Emissions Reduction Quantification Approaches for Performance Contracting Programs August 4 th, 2016 Missed one? Find webinar materials at 3

4 GoTo Webinar Instructions Open And Hide Your Control Panel Join Audio Choose Mic & Speakers to use VoIP Choose Telephone and dial using the information provided Questions Submit questions and comments via the Questions panel 4

5 Speakers Ashley Fournier Director of Operations Abby Fox Policy Manager 5

6 Multifamily Building Stock Characteristics 6

7 Multifamily Building Definition Common Definition: Building with 5 or more units. Definition for this Assessment: Building with more than one dwelling unit. Does not includes single-family attached or unattached, boat, RV or van housing units. *Includes 2 to 4 unit structures. 7

8 Southeast Housing Market All Housing Units 1-Unit Attatched 4% Mobile home 11% 1-Unit Detatched Multifamily 63% Units 22% Multifamily Units Units 21% +20 Units 5-9 Units 31% 21% 2-4 Units 26% 34.7 Million Housing Units 7.5 Million Housing Units * This chart excludes boat, RV and van housing units. Source: American Community Survey 5-Year Estimates 8

9 Where Are These Multifamily Units? Location of Multifamily Housing Units by Number of Units Metropolitan and Micropolitan Statistical Areas of the United States and Puerto Rico February 2013 Total Multifamily Units 20 or more units 10 to 19 units 5 to 9 units 2 to 4 units Millions Outside MSA Inside MSA Source: American Community, Survey 5-Year Estimates 9

10 Multifamily Building Construction Trends 10

11 Multifamily Construction Trends Dimension of Analysis: 1. Number of Projects 2. New Construction vs. Renovation 3. Location of Projects 4. Size of Projects 5. Value of Projects 11

12 Number of Multifamily Projects Multifamily Building Construction Starts ( ) New Renovation Source: Construction Market Data Group LLC 12

13 Number of Construction Projects Southeastern Construction Starts by Building Type ( ) Amusement 6% Hospitals, Clinics Multifamily 6% 4% Offices, 3% Other* 22% Retail Misc. 7% College, University 9% K-12 Schools 17% Government Offices 11% Shopping 15% Source: Construction Market Data Group LLC *Other category includes building sectors with project totals less than three percent of the total construction starts. 13

14 Size of Construction Projects Top 5 Building Types with Highest Total Project Area ( ) Building Types New Construction Total Project Area (millions sq. ft.) Renovation Total Project Area (millions sq. ft.) Total Project Area (millions sq. ft.) 1. Multi-Family Shopping Manufacturing Offices Warehouses Highlight: Multifamily projects are large in size 14

15 Size of Projects: New vs. Renovation New Construction Represent 48% of projects Total Project Area: 819 Million Sq. Ft. 98% of Total Average Project Area: 164,000 Sq. Ft. Renovation Represent 52% of projects Total Project Area: 11 Million Sq. Ft. 2% of Total Average Project Area: 23,000 Sq. Ft. Highlight: New construction projects are much larger than renovation 15

16 Project Value Combination of numerous inputs, including: Cost of materials installed or erected, Construction labor, Equipment rental, Architectural and engineering work, Contractor overhead, and Interest and taxes paid during construction. 16

17 Project Value: New vs. Renovation Multifamily Project Value ( ) Project Type Total Project Area (millions sq. ft.) Total Number of Projects Total Project Value (millions of $) Average Project Value Per Project (millions of $) New ,980 $90.04 $18.08 Renovation ,318 $7.37 $4.10 Grand Total ,298 $97.41 $16.86 Highlight: New construction projects have a higher average project value and generate higher total project values when compared with renovation projects Source: Construction Market Data Group LLC *Project area data is only available for half of all projects completed during this time period. The average project area is the average of those projects that have reported project area values and not of the total number of projects. 17

18 Project Value: New Construction Southeast New Construction Project Value by Building Type ( ) Amusement 3% College, University 5% Hospitals, Clinics 6% Offices 7% Government Offices 2% Retail. Msc. 2% Other* 32% Shopping 9% K-12 Schools 12% Multi-Family 22% Source: Construction Market Data Group LLC *Other category includes building sectors with project values less than three percent of the total construction value. 18

19 Trends Multifamily units account for nearly a quarter of the total housing market in the Southeast. The majority of multifamily units tend to be concentrated in the Southeast s major metropolitan areas. New construction multifamily projects are large and generate substantial project value. Renovation multifamily projects are smaller than new construction, but there are more renovation projects total. 19

20 Opportunities Real Estate Developers and Contractors Focus on new construction Cities and metro areas Renovation opportunities for smaller projects Utilities and Program Administrators Inclusion of technologies or measures in new construction Utilize metro infrastructure for program marketing Lifecycle relationships State and Local Government Agencies and NGOs Targeting or aligning incentives/programs Ordinances or policies Financing 20

21 What About My State? State Multifamily Analysis Pages 21

22 Multifamily Program Analysis 22

23 Utility Program Coverage Metro Area Percent Multifamily Housing Units Standalone Multifamily Program? Miami-Fort Lauderdale-West Palm Beach, FL 46% No Atlanta-Sandy Springs-Roswell, GA 25% No Tampa-St. Petersburg-Clearwater, FL 28% No Orlando-Kissimmee-Sanford, FL 28% No Charlotte-Concord-Gastonia, NC-SC 20% Yes Nashville-Davidson Murfreesboro Franklin, TN Virginia Beach-Norfolk- Newport News, VA-NC 23% No 25% No Jacksonville, FL 25% No Memphis, TN-MS-AR 23% Yes New Orleans-Metairie, LA 28% Yes 23

24 Program Type (n=9) Equipment Rebates 11% New Construction 11% Direct Install 78% 24

25 Program Start Date

26 Case Studies Multifamily Energy Efficiency Program Energy Advantage Apartments 26

27 Tax Credit Allocation Source: Global Green

28 PACE Financing Source: PACENation

29 Loan Programs Multifamily Energy Retrofit Program 29

30 Key Takeaways Utility program coverage is spotty, but growing. Multifamily buildings have unique needs and characteristics that may not be served by other programs. Numerous tools exist to support energy efficiency opportunities for multifamily housing. Resources and support tools are often shared between numerous actors. Additional research is needed to better understand and capture the multifamily energy efficiency opportunity in the Southeast. 30

31 Other Considerations What is the economic impact of multifamily building projects on state and local economies? What factors are contributing to a greater number of multifamily renovation projects? How energy-efficient is the Southeast s multifamily building stock? What are the largest contributors to energy usage? Do standalone utility-administered multifamily programs perform better than those that serve multifamily properties as a subset of broader programs? Has spending grown for existing utility-administered energy efficiency programs? How does the relative level of spending and savings of these programs compare nationally? What barriers prevent southeastern utilities covering multifamily-rich geographies from offering programming to serve multifamily properties? What challenges and opportunities have utility program administrators that are offering multifamily programs identified in their work? What is the impact of benchmarking on encouraging energy savings in multifamily properties? Are there successful models from other regions that support greater coordination of the multiple actors involved in multifamily energy efficiency efforts? 31

32 Questions? 32

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