Top 5 Reasons Why Multifamily Unit Dwellings (MUDs) Should Install EV Charging Stations
The trend toward increased electric vehicle (EV) charging availability in multifamily unit dwellings (MUDs) is supported by both market demand and policy initiatives, signaling a positive trajectory for future adoption.
While homeowners can install chargers and power their EVs at home, apartment residents and multifamily unit dwellers rely on landlords, and in some cases, have been altogether discouraged from making the switch due to the lack of infrastructure at these properties.
As buyers shift with vehicle trends in the U.S., the need for supporting infrastructure is an opportunity for property owners to seize.
1. Nearly one-third of U.S. housing is multifamily
In a publication from February 2024, the Joint Office of Energy and Transportation states that 31 percent, or 44 million households, are in multifamily housing. This proportion underscores the significant role that multifamily housing plays in accommodating the diverse living needs of the population.
For instance, according to the National Multifamily Housing Council, there are approximately 23 million apartment units in the United States, which forms a substantial segment of the housing market (Fannie Mae Multifamily).
2. EV purchases are on the rise
Since changes made to the Inflation Reduction Act of 2022, the Internal Revenue Service (IRS) notes that those who purchase a new, qualified plug-in EV or fuel electric vehicle (FCV) may qualify for a credit up to $7,500.
According to the U.S. Energy Information Administration (EIA), there were over 2.1 million light-duty EVs on the road in 2021. In the fourth quarter of 2023, there were roughly 3.3 million EVs according to an Experian Automotive Market Trends report. Compared to the under 100,000 EVs on the road in 2012, EVs saw a rise of 2,000 percent in 11 years. In continuation, future projections look promising.
According to the National Renewable Energy Laboratory, it’s estimated that in 2030 there will be over 33 million EVs on the road — and 28 million EV charging ports will be needed to support them.
3. Most EV charging happens at home
Convenience, affordability, and stability are driving factors for powering up EVs at home.
The U.S. Department of Energy indicates that roughly 80 percent of EV charging occurs at home. While charging still occurs at workplaces and public charging stations, drivers have taken preference to residential charging.
4. Properties can receive money back for installing EV charging
With all the demand for EVs and their charging counterparts, the U.S. government has begun incentivizing properties to help with infrastructure. According to the IRS, properties are eligible to receive 30 percent credit back, up to $100,000 ($30,000), for installing EV charging stations. This credit is an extension of a modification of the Inflation Reduction Act (IRA) and is known as the Alternative Fuel Vehicle Refueling Property Tax Credit.
5. Untapped market — set yourself apart from competition
Despite the growing demand for electric vehicles, only a small fraction of multifamily properties currently offer EV charging facilities. This gap presents a significant opportunity for property owners and investors.
While many companies are entering the market to provide EV charging solutions for multifamily units, the infrastructure is still developing. Southern California Edison, for instance, has committed $436 million to install 35,000 charge ports, focusing primarily on multifamily properties (Commercial Observer) (Alternative Fuels Data Center). However, many multifamily buildings have yet to implement these facilities, highlighting the untapped potential of this market.
Conclusion
In summary, the installation of EV charging stations in MUDs represents a strategic investment that aligns with several compelling factors. Integrating EV charging solutions is not only a forward-thinking initiative but also a practical move toward future-proofing properties.
Get a custom-tailored approach for your property by contacting CES EV Solutions today at EVSolutions@cityelectricsupply.com or 984-849-4850.