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Water Conservation in Affordable Housing: Environmental and Financial Impacts
In the affordable housing space, we often focus on social impact—and rightly so! Elevating the living conditions of our community leads to so many benefits, not the least of which is the increased health and well-being of our community's residents.
But in addition to that social impact, investors and property managers also have the potential and opportunity (though often an unrealized one) to make a positive environmental impact. And doing so is often far less complicated or expensive than you might think.
Take something as simple as plumbing fixtures. Updating water fixtures in apartment complexes and other housing units is an easy and inexpensive improvement that makes an outsized impact, both environmentally and financially.
A Brief History of Water Fixtures
Understanding the progress we’re making starts with knowing where we’ve been, so bear with us through a brief (we promise!) history of water fixtures and the water conservation legislation that has guided their evolution.
Back in 1994, the Energy Policy Act of 1992 finally became law. In that legislation was a requirement that toilets manufactured after 1994 could use no more than 1.6 gallons per flush (GPF). Prior to this legislation, most toilets in the US used more than twice as much water: 3.5-3.7 GPF.
This legislation was the catalyst for decades of conservation-focused fixture advancements that continue today. In 2007 the EPA’s WaterSense standard was codified. This optional program uses aerators in bathroom faucets to reduce water use without sacrificing performance. WaterSense expanded to showerheads and other fixtures as well.
The EPA estimates that if the entire US switched to WaterSense-certified showerheads, we would save annually:
- 260 billion gallons of wastewater
- $2.9 billion in water utility bills
- $2.5 billion in water heating costs
Innovation continues to push water usage down further below federal regulations: new high-performance toilets use just 0.8 GPF without sacrificing performance.
The Affordable Upstate Water Conservation Package
Affordable Upstate’s water conservation package is simple: we leverage advances in water and fixture technology to save water and lower utility costs.
When purchasing assets built in the 1970s through early 1990s, we typically acquire buildings equipped with original toilets and fixtures. These fixtures are already using sometimes twice the water of their modern counterparts, and that’s before considering deterioration due to age.
These assets are missing out on 50 years of significant plumbing and water conservation advancements—and the cost savings that come with them.
Affordable Upstate has developed a robust water conservation package covering virtually every plumbing fixture in every unit. We retrofit kitchens and bathrooms with modern fixtures designed for water conservation, installing 0.8 GPF toilets, 1.25 GPM showerheads, and WaterSense certified low-flow faucet aerators to maximize water savings.
We've implemented this package at several of our recent acquisitions and revitalization projects, and the results have been astounding.
Here is one example of the results we achieved through this small investment.
Environmental Impact at Vista West I
Vista West I is a 76-unit apartment complex built in 1971. When we acquired it, the asset still had its original high-volume plumbing fixtures. It was the first property to receive our water conservation package, which we completed in 2021.
As you can see from these exterior views, our renovations went far beyond plumbing fixtures. Still, the water conservation package made an outsized impact.
We replaced every toilet and showerhead in all 76 units and replaced or added aerators to all faucets.
These relatively small fixture changes resulted in an approximate annual water savings of 2.2 million gallons for the property! And this estimate is conservative, based on the minimum figures in each measurement or estimate we received, meaning the savings are likely greater.
We don’t often think of small water-saving efforts like these as environmental conservation, but the compounded benefits to the environment are absolutely real.
Beyond Water Savings
The environmental impact of these conservation efforts extends past the whopping 2.2 million gallons of water saved annually at Vista West I. According to the US government's Energy Star program, conserving water helps the environment by diverting less water from limited fresh water resources such as rivers, bays, and estuaries.
In addition to protecting our freshwater resources, cutting water use mitigates some of the environmental cost to treating wastewater. Wastewater plants are a source of pollution. Conserving water helps those facilities work more efficiently and reduces the need to expand or build more treatment sites. On the back end of the process, water conservation efforts result in healthier wastewater receiving bodies: with less water going down the drain (literally), we’re reducing the amount of pollution and energy expenditure our local wastewater plants must produce as they treat and process everything they collect.
We were amazed by the environmental impact of this relatively small upgrade. But the environmental aspect is just one side to this story: the financial impact is worth discussing as well.
Financial Impact at Vista West I
Our water conservation efforts at Vista West I resulted in a 66% reduction in average monthly water bills.These savings effectively reduced the property’s recurring operating expenses, which ultimately helps us continue our mission of keeping rents affordable in an inflationary market.
This has game-changing implications for affordable housing. Instead of driving out lower income residents, we can elevate them and bring dignity, hope, beauty and revitalization to their communities— all while producing a solid return on investment for ourselves and our investor partners.
Expanding Our Water Conservation Mission
Following the success of our Vista West I water conservation efforts, we’ve implemented the same plumbing fixture upgrades in our most recent investment properties—Pacolet, North Franklin, Fairhill, Fairmeadow, and Hillcrest—completed in July 2022. The limited data we have from these properties is already showing significant savings in water use and utility bills.
Across the portfolio of AU properties that have received our water conservation package, we are conserving 7.9 million gallons of water (conservative estimate) a year! That’s around 8 million (or more) gallons we’re not taking from our precious fresh water sources or sending to wastewater treatment.
On average across our properties, we project that our water conservation package will reduce utility bills by $196/year per unit. This reduction in operating expenses allows us to charge less in rent even as we improve quality of life for residents.
Our goal in sharing these findings is twofold: First, we want to inspire other investors and property managers to implement these techniques for the good of the environment and for the good of their communities. Savings like these can be a big win for everybody.
Second, we’re looking for partners who see the value in our innovative approach and who will invest with us—both for stable and significant ROI and for the greater good of our community. We believe that our disciplined, strategic approach to affordable housing will maximize our investors’ returns while bringing modern, energy-efficient, affordable living to the Upstate of South Carolina and throughout the southeastern US.
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MISSION
Our mission is to modernize and preserve naturally occurring affordable housing in the Upstate of South Carolina by investing in communities that are as equally fulfilling for our residents as they are strategic for our investors.