Developers today are under mounting pressure to meet energy codes, achieve carbon reduction goals and deliver housing that is healthy, comfortable and affordable. Whether market-rate or affordable housing, the reality is that people want homes that are not only well-designed but also economical to operate. That’s why attention to energy efficiency and utility costs has become such a critical factor in leasing and retention. In some cases, this pressure has even pushed developers toward more ambitious approaches such as Passive House strategies or other high-performance design measures.
At the same time, the challenge for developers frequently lies in balancing first-cost considerations with long-term value. Investments in low-carbon design systems may require higher upfront spending, but thoughtful, lifecycle-focused choices can reduce operating spend, improve the resident experience and enhance the long-term resilience and financial performance of a property. In high-density housing, aligning sustainability with livability has moved from aspiration to a baseline expectation of the market.
Designing with the Site, Not Against It
One of the most effective strategies for sustainable, high-density housing is working with the site rather than against it. Thoughtful site-responsive design, which considers topography, existing vegetation and hydrology, can reduce site preparation, minimize environmental impact and simplify stormwater management. The latter may not be the most glamorous part of sustainable design, but it is essential. Managing existing water on the development site before construction begins protects the landscape and strengthens long-term resilience.
Additionally, it’s important to use a building’s orientation, window placement and interior layout to be most conducive to bringing in natural light without relying on mechanical systems.
In warmer climates, shading helps control heat gain. In cooler climates, maximizing daylight can reduce artificial lighting and heating needs. Even small choices, such as window placement and sunlight control, have measurable effects on consumption and resident comfort.
Rooftops have also evolved from overlooked spaces to critical opportunities for energy performance. Twenty years ago, photovoltaic (PV) arrays were rarely considered in multifamily design. Today, many jurisdictions require accommodations for future PV systems, giving buildings a clear path toward renewable power and added resiliency.
Overall, when a building is positioned intelligently, developers can take advantage of passive daylighting, manage solar exposure and help mitigate urban heat island effects to create more comfortable and environmentally conscious places to live in. Buildings that use these resources wisely, support residents and demonstrate social responsibility are the ones that will continue to stand out to tenants, investors and future buyers.
Electrification and Energy Performance
Moving toward all-electric multifamily buildings is another key strategy for reducing carbon emissions and lowering long-term operating costs. This includes high-efficiency heat pumps, dedicated outdoor air systems (DOAS), energy recovery ventilators (ERVs), low-flow water fixtures and smart lighting controls. These features reduce power use while helping projects meet evolving clean building standards.
However, it’s not just about switching appliances. Managing electrical load has become a major challenge. Many projects now include electric vehicle chargers for a significant portion of parking spaces, which increases overall demand. The most important step is getting involved early with the utility to understand load requirements and plan for both current and future capacity.
Resiliency is also a large consideration. On-site energy generation, such as through rooftop PV arrays, can offset demand and sometimes even feed supply back to the grid. Buildings that can maintain operations independently and handle peak demand are more attractive to investors and buyers, especially in areas where grid reliability is a concern.
Finally, thinking about the lifecycle cost makes these investments pay off. Smart systems reduce utility bills, improve residents’ lives and make buildings more marketable down the line. For developers and investors, electrification is a way to deliver long-term value, resilience and a building that tenants actually want to live in.
Designing for Livability and Equity in Sustainable Housing
Sustainability in multifamily housing works best when it directly improves the resident experience. Thoughtful design can enhance indoor air quality, daylighting, thermal comfort and overall wellness, while also guaranteeing equitable access to amenities.
Features such as low-VOC materials, well-insulated units, thoughtfully planned views for all residents and bike and EV infrastructure help create healthier, more connected communities. But these design choices are not just nice-to-haves; they have real impacts on leasing performance and resident retention. When units are energy-efficient and comfortable year-round, the cost of living goes down, and residents are happier and more likely to stay.
A big part of it comes down to the affordability of living there — not just rent, but utility costs and efficiency. Well-insulated units and good natural lighting make a real difference in how people experience their homes. Sustainability and livability go hand-in-hand. Buildings designed to support health, wellness and equity benefit residents and strengthen the long-term success and market appeal of the property.
The Future of Sustainable Multifamily Development
As we move into 2026, scalable, high-density, low-carbon housing is becoming the baseline expectation for both regulators and the market. Developers who integrate sustainability early gain clear advantages, including lower long-term operating costs, reduced risk, and stronger appeal to both communities and tenants.
A robust building envelope remains central to high-performance design. Thoughtful solar orientation, window placement and smart materials help minimize heating and cooling loads, allowing mechanical systems to be smaller and more efficient. Early planning also opens doors to incentives and funding opportunities, such as C-PACE financing, which can help offset fees for energy efficiency and resiliency measures.
Starting the conversation about sustainability at the very beginning of a project is essential. Buildings designed this way are more cost-effective to operate, meet regulatory requirements and respond to what tenants want. Developers and investors who embrace these strategies will be positioned to deliver high-density housing that is resilient, efficient and ready for the future.
Brad Bane is affordable housing studio leader at Portland, Oregon-based architecture, interior design and planning firm Ankrom Moisan.