The International Finance Corporation (IFC) has published a new journal article discussing the drivers for green affordable housing and its profitability in business. It identifies 6 drivers :
1) access to international green finance flows for better financing terms;
2) minimized incremental cost through early planning;
3) faster sales through market differentiation;
4) savings on utility bills for owners and renters;
5) lowered default rates and superior collateral value for green mortgages;
6) fiscal and non-fiscal incentives from local or national governments.
The article also looks at case studies to show that the right combination of government incentives, education and technical assistance to developers, and green finance can transform housing markets.
Read the full article here.