Green Affordable Housing

California’s housing rates rank among the most expensive in the nation. Data from the U.S. Census Bureau indicates that at least 40% of the state’s households earn less than the annual income required to afford an average two bedroom apartment.

Utility costs are an important component of housing affordability. With costs for basic energy and water services rising throughout California, the burden on low-income households is not likely to diminish on its own. Although some key determinants of residential water and energy demand, such as seasonal weather patterns, cannot be controlled, the installation of high efficiency technology and modest adjustment of behavioral and usage patterns can greatly influence overall expenses for energy and water. 

The age of the state’s affordable housing stock may exacerbate existing utility cost burdens for low-income households. Approximately 75% of California’s affordable housing stock was constructed prior to the introduction of substantive energy code requirements in 1985. These older buildings and appliances tend to make less efficient use of energy and water, resulting in higher utility bills. Housing developed with assistance from the U.S. Department of Housing and Urban Development (HUD) is particularly susceptible to this trend. A 2001 Residential Energy Consumption survey showed that 85% of HUD-assisted multi-family properties in California were constructed before energy codes went into effect in 1985.