Renters Seek Energy Savings as Utility Costs Rise
A SmartRent survey found 92% of renters say cutting utility costs matters. Last year, 63% saw bills rise; less than half say property managers communicate or care.
PHOENIX — Renters are increasingly prioritizing energy efficiency and cost-saving technologies when choosing a home, a new survey found.
Rising utility costs are shaping renter decisions: 92% prioritize cutting monthly bills, 63% experienced a utility hike in the past year and 76% expect costs to rise again, a survey by SmartRent found.
Energy-efficient features like smart thermostats and appliances influence leases, while high energy costs and lack of in-unit control are top deal breakers. Renters are even willing to pay more if energy savings keep total spending steady.
As utility costs continue to rise – electricity alone is up 34% since 2020 – 92% of respondents said reducing their monthly utility expenses is very or somewhat important when choosing a place to live. Sustainability is also a strong motivator, with 75% of renters stating that it’s important to them to reduce their environmental impact.
A financial imperative for renters
More than 63% of survey respondents reported experiencing a utility bill increase over the last year, with 35% of those who saw an increase reporting hikes of more than $51 per month. An additional 76% of respondents are very or somewhat concerned about their utilities increasing over the next year, adding a layer of economic stress that they’re eager to mitigate.
“The survey showed that renters are keenly aware of their utility spending, and they’re generally aware of the technologies that can help to reduce their energy consumption,” said Frank Martell, president and chief executive officer of SmartRent. “It was also clear that they expect property management companies to help limit their utility bills through the use of smart home solutions and energy-efficient property technologies. Meeting that demand is essential to attract renters, drive resident satisfaction and retention, and build trust between renters and management teams.”
Communication and control are key differentiators
Only 48% of survey respondents feel their current property manager effectively communicates about their unit’s energy usage, and just 44% believe their property manager effectively communicates and cares about helping residents reduce utility costs.
Property managers have an opportunity to acknowledge and accommodate renter preferences through the implementation of smart home solutions and other technologies designed to enhance resident control over their utility usage. The survey identified several energy-related technologies that respondents said could influence their decision to sign or renew a lease, including:
- Energy-efficient appliances – 69%
- Smart thermostats – 58%
- Online energy trackers – 51%
The absence of energy-efficient technologies has a similar influence on renter decision-making. Top deal-breakers revealed in the survey include:
- The inability to control in-unit heating and cooling — 69%
- High energy costs — 68%
The bottom line is that energy efficiency is a feature renters are willing to pay for, with 32% of survey respondents saying they would be willing to pay more for rent if reduced utility costs meant their overall monthly spending remained the same. An additional 33% said they would pay more in rent if the unit was energy efficient and offered consistent savings, providing property managers an avenue to offset implementation costs.
Methodology
Morning Consult interviewed 995 renters in the United States between July 26 – 28, 2025. The margin of error for the total sample is +/-3 at the 95% confidence level. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on gender, educational attainment, age and region.
Source: SmartRent
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