The Benefits of Installing EV Charging on Multi-Family Properties

By Stephen Segall, Triforce Commercial Real Estate

The rise in electric vehicle (EV) adoption, driven by growing environmental awareness and advancements in technology, marks a significant shift in the automotive industry.  As more consumers transition to electric cars, the demand for convenient and accessible charging solutions has increased dramatically. This shift brings to light the critical importance of EV charging stations in multifamily properties.

Growing Demand for EVs

The global market for electric vehicles has seen explosive growth over the past decade. According to the International Energy Agency (IEA), the number of electric cars on the road worldwide surpassed 10M in 2020, a figure that continues to grow as more consumers embrace cleaner transportation options. In the United States alone, electric vehicle sales increased 85% from 2020 to 2021, reflecting a significant shift in consumer preference.

The National Renewable Energy Laboratory estimates that by 2030 there will be 33M EVs on the road and 28M EV charging ports will be needed for them. Approximately 570K ports will be needed to satisfy multifamily consumer demand alone. 

Several factors contribute to this surge. Governments are implementing stringent emission regulations and offering incentives for EV purchases, while automakers are expanding their electric vehicle lineups. Additionally, advancements in battery technology have extended the range of electric cars, making them more practical for everyday use.

The Need for EV Charging Infrastructure

With the growth in electric vehicles, the need for robust charging infrastructure becomes paramount. A lack of convenient charging options can deter potential EV buyers, limiting the adoption of electric vehicles. For residents of multifamily properties, such as apartments and condominiums, access to EV charging stations is particularly critical.

According to a report by the National Renewable Energy Laboratory (NREL), 80% of EV charging occurs at home. However, residents of multifamily properties often face challenges in accessing charging facilities due to the lack of dedicated parking spaces and the complexity of installing charging stations in shared spaces. Without adequate charging infrastructure, these residents may be discouraged from purchasing an electric vehicle, hindering the broader goal of reducing greenhouse gas emissions.

Benefits of Installing EV Charging Stations in Multifamily Properties

Installing EV charging stations in multifamily properties offers numerous benefits for both residents and property owners:

1. Increased Property Value and Attractiveness

Properties equipped with EV charging stations are more attractive to potential tenants, especially as the demand for electric vehicles continues to rise. According to a study by the real estate services firm CBRE, multifamily properties with these stations can command higher rents and experience lower vacancy rates. This added amenity can set properties apart in a competitive rental market, attracting environmentally conscious tenants and enhancing the property's overall value.

2. Supporting Sustainable Living

By providing EV charging infrastructure, multifamily properties can contribute to a more sustainable living environment. This aligns with the growing emphasis on green building practices and environmental responsibility. Residents with access to charging stations are more likely to adopt electric vehicles, reducing their carbon footprint and contributing to cleaner air in urban areas.

3. Government Incentives and Support

Recognizing the importance of EV charging infrastructure, governments at various levels are offering incentives and support for the installation of charging stations in multifamily properties. In the United States,  federal government tax credits and grants for EV charging infrastructure as well as state and city  rebates and incentives help offset the upfront costs and increase the attractiveness of the investment.

Conclusion

The integration of EV charging stations into multifamily properties is a crucial step in supporting the widespread adoption of electric vehicles. As the demand for electric cars continues to grow, providing convenient and accessible charging options will become increasingly important. By installing EV charging stations, property owners can enhance property value, attract environmentally conscious tenants, and contribute to a more sustainable future. With government incentives and support available, now is the opportune time for multifamily property owners to invest in EV charging infrastructure and embrace the electric vehicle revolution.