The first question many investors ask is whether spending more on sustainable features will deliver measurable returns. Is the juice worth the squeeze? It might seem like higher upfront costs would be a deterrent at first glance, but a recent study found that green buildings cost only 6.5 percent more per square foot to develop on average but rent for 13 to 36 percent more and sell for 10 to 21 percent more than traditional properties.
With buildings and construction contributing nearly 40 percent of global greenhouse gas emissions, sustainable architecture is not just seen as a financially savvy investment, but as an environmental choice that can lead to a more resilient property. Between growing environmental awareness and tightening regulations, sustainability has become one of the most strategic investments to make in multifamily projects.
The following highlights how architects can frame sustainability as a high-value investment in multifamily projects.
Increased Property Values
Properties with sustainable features consistently outperform their competitors in the marketplace. Whether through LEED certification, ENERGY STAR® ratings, or integration of renewable energy, green buildings have higher resale values and stronger interest from investors. Buyers are not only purchasing square footage, they are purchasing reduced operating risk and market relevance, translating into direct capital appreciation.
Higher Rents and Occupancy
Tenants are increasingly willing to pay more for apartments that deliver lower utility bills, healthier indoor environments, and modern green amenities. Higher rents, paired with stronger occupancy rates, increase net operating income and raise the long-term value of the asset.
Lower Operating Costs
Operating costs can be one of the biggest draws for sustainable upgrades because of the bottom line savings. Energy-efficient HVAC systems, LED lighting, smart building controls, and water-saving infrastructure all reduce ongoing expenses. Passive House Design takes it a step further by applying airtight construction, advanced insulation, and high-performance windows across entire buildings. In a multifamily setting, this approach stabilizes indoor temperatures with minimal heating or cooling, reducing energy use by up to 40-60 percent while lowering the cost of operating shared spaces like lobbies, gyms, and pools.
For owners, those savings compound year after year, strengthening net income and creating a cushion against rising energy costs. For architects, positioning these elements as upfront design strategies reinforces the idea that smart planning reduces long-term financial exposure.
The Market Shift Toward Green Design
Resident Demand
Nowadays, sustainability is less of a perk and more of an expectation. Tenants are actively looking for living environments that align with their healthy, efficient, and environmentally responsible lifestyles. Top of mind are air quality improvements, natural light, energy-efficient appliances, and visible attributes like solar panels or green roofs. Properties that overlook these features can risk appearing dated as soon as they enter the market.
Regulatory Incentives and Requirements
Policy is moving quickly, with cities adopting energy benchmarking mandates, emissions targets, and electrification codes that directly affect multifamily housing. In Chicago and across Illinois, programs and utility rebates are available that can help offset upfront costs for sustainable upgrades. Factoring these opportunities into design decisions allows architects to guide owners toward strategies that capture available incentives and align with new regulations now while reducing the risk of costly retrofits later.
Retention Through Better Living
Differentiation in a Crowded Market
Multifamily construction is competitive, especially in urban hubs like Chicago and its surrounding communities where new projects often look similar on the surface. Sustainable features provide a point of differentiation. From solar canopies that double as shade structures in courtyards to green roofs that create visible amenity space, these elements build a narrative that elevates one property over another.
Reducing Turnover Costs
Resident retention is one of the most overlooked financial benefits of sustainable design. Turnover is expensive at nearly $4,000 per resident on average when factoring in vacancy loss, unit repairs and refresh costs, concessions, and added marketing. Sustainable buildings, by contrast, have been shown to reduce turnover because residents are more satisfied with their living environment. Retained tenants mean steadier cash flow and lower expenses for owners, a compelling selling point architects can help emphasize.
Health and Wellness Benefits
The global wellness movement has been influencing how multifamily properties are designed and built in recent years. With the wellness economy projected to reach $8.5 trillion by 2027, health-focused living is no longer a niche preference but a mainstream driver of value. Green roofs that support biodiversity while giving residents healthier common areas, bike storage and repair facilities that encourage active commuting, and pedestrian-friendly site planning that strengthens connections to nearby transit are becoming staples in design.
Looking Ahead
When taken together, the financial gains, market movement, and retention advantages show why sustainability is a sound investment strategy. Each decision, from material selection to site planning, becomes an opportunity to strengthen long-term value while meeting the expectations of today’s market.
By treating sustainability as both a practical necessity and a competitive advantage, design teams can help owners see that the payoff far outweighs the upfront squeeze.
Our team is here to help you deliver properties that perform as well in the market as they do on paper. We see our role as an extension of yours—turning design into buildings that last and earn trust with both residents and owners. If that’s the kind of partnership you’re looking for, contact ETI to discuss your next multifamily project.