During a recent government meeting, officials discussed the pressing issue of energy efficiency in residential rental properties, highlighting the significant challenges posed by the \"split incentive\" phenomenon. Approximately 55% of the housing stock in the area consists of rental units, yet there are currently no targeted programs addressing emissions from these households.

The split incentive occurs when property owners, who are responsible for making energy-efficient upgrades, do not benefit from the resulting utility cost savings, as tenants are the ones paying the bills. This disconnect discourages landlords from investing in improvements that could lower energy consumption and costs for renters. In contrast, homeowners are more likely to invest in energy-efficient upgrades because they directly reap the financial benefits.

Officials emphasized the need for a strategic approach to tackle this issue, as rental properties are upgraded at a significantly lower rate compared to single-family homes. The discussion underscored the importance of creating incentives for property owners to invest in energy efficiency, which could lead to substantial savings for tenants and a reduction in overall emissions.

The meeting concluded with a call for feedback on potential solutions to address these challenges, aiming to foster a collaborative effort to improve energy efficiency in the rental housing sector.