Market Segmentation Strategies to Increase Demand in the Multifamily Market in Michigan

The purpose of this report was to research and develop market segmentation strategies to increase demand for financing energy efficiency projects in the multifamily market in Michigan. The scope of this research was limited to market rate, multifamily properties because property owners in this market segment tend to have a greater need for financing. To accomplish this purpose, Michigan Saves interviewed several contractors and representatives of nonprofit organizations who serve the multifamily housing market. Michigan Saves asked participants to identify impediments to market demand and barriers to financing, as well as opportunities to increase market demand and financing. These interviews provided valuable insight into how contractors and nonprofit housing organizations approach this market and sell energy efficiency equipment and services.

Michigan Saves expects to share our findings with contractors, nonprofit housing organizations, and utility partners working in the multifamily market to stimulate greater investment in energy efficiency improvements. This report can also serve as a guide that helps public and private sector investors to more effectively deploy loan capital. By understanding the impediments to public and private investment in energy efficiency improvements and implementing the recommended strategies, federal and state agencies, utilities, nonprofit organizations, and other partners can design more effective multifamily energy waste reduction programs.