Most Renters Are Still Locked Out of Energy-Saving Home Upgrades, New Study Finds

As winter heating bills continue to climb across the United States, a new study from Binghamton University, State University of New York highlights a serious and often overlooked problem: most renters simply cannot access the energy-saving upgrades that could lower their costs, improve comfort, and protect their health.

Renters make up about one-third of the U.S. population, yet they remain largely excluded from meaningful energy efficiency improvements. According to the research, renters are stuck in homes that are harder and more expensive to heat, not because solutions don’t exist, but because the people who live there are rarely the ones allowed to make changes.

The study, titled “Still muddling through: Local sustainability leaders and energy efficiency in rental units,” was published in the journal Energy Research & Social Science. It takes a close look at how local governments across the country are trying—and often struggling—to address energy efficiency in rental housing.

Why Renters Pay More for Energy but Get Fewer Solutions

One of the key findings of the study is that renters shoulder much of the energy cost burden. More than 90% of renters in the U.S. pay at least part of their energy bills, and around three-quarters pay the full cost themselves. Despite this, renters typically lack the authority to make major energy upgrades to their homes.

Basic improvements such as better insulation, energy-efficient windows, upgraded doors, or modern heating systems require building ownership. Renters, by definition, don’t own the property, which means they can’t make these changes even if they are willing to pay for them.

This creates tension between renters and landlords. Renters want lower bills and more comfortable living conditions. Landlords, meanwhile, are responsible for approving and funding upgrades—but they usually don’t benefit from the energy savings since they aren’t the ones paying the monthly utility bills.

This disconnect is known as the “split incentive” problem, and it sits at the heart of the issue.

Small Fixes Can’t Replace Real Energy Improvements

Some renters try to compensate by making small, temporary changes on their own. These often include placing plastic sheets over windows or using portable heaters. While these fixes may offer slight improvements, the study makes it clear they are mostly superficial and do little to reduce energy costs in a meaningful way.

The most effective energy upgrades—like insulating walls and roofs or replacing outdated heating systems—are simply out of reach for most renters. These improvements can dramatically reduce energy use, lower bills, and make homes warmer and healthier. But without ownership rights, renters remain stuck with inefficient housing.

Health Impacts Go Beyond Higher Bills

The consequences of poor energy efficiency extend well beyond finances. The research highlights a strong link between rental housing conditions and negative health outcomes.

Renters experience higher rates of asthma and other respiratory issues, often due to cold, damp, or poorly insulated homes. Living in substandard housing doesn’t just make winters uncomfortable—it can seriously affect quality of life.

The study emphasizes that this situation is fundamentally inequitable. Homeowners are often able to spend less per square foot on energy because they can invest in upgrades. Renters, on the other hand, pay more while living in less efficient spaces, even though they are frequently lower-income households.

What Local Governments Are Doing—and Why It’s Not Enough

To better understand how this problem is being addressed, the research team interviewed 59 municipal and county government officials across the United States. These officials were sustainability leaders responsible for energy and climate initiatives at the local level.

The interviews revealed that many communities do offer programs designed to improve energy efficiency in rental units. However, most of these initiatives reach only a small fraction of the rental housing stock.

Several obstacles repeatedly came up:

Landlord reluctance to invest in upgrades that don’t directly increase short-term profits
Aging and poor-quality rental housing stock
Renters’ hesitation to participate in programs that require landlord approval
Program design limitations, such as restricting eligibility to public housing or low-income units only

In many cases, programs technically allow renters to participate, but the need to seek landlord permission discourages involvement. Renters are often wary of creating tension with landlords or risking their housing stability.

When Programs Help Homeowners More Than Renters

Another key finding is that many energy efficiency programs are open to all residents in theory, but mostly benefit homeowners in practice.

For example, governments frequently subsidize solar panel installations. While these programs support clean energy, they largely exclude renters. Solar panels require property ownership and significant upfront investment, putting them out of reach for most people who rent.

As a result, public funds meant to promote sustainability often end up widening the gap between homeowners and renters instead of closing it.

Promising Strategies That Are Starting to Work

Despite these challenges, the study does point to several promising approaches that some jurisdictions are beginning to adopt.

One of the most effective strategies involves rental licensing programs. Many cities already require rental properties to be inspected every few years to ensure they meet basic safety and code standards. Some communities are now adding energy efficiency requirements to these inspections.

Under these programs, landlords must improve the energy efficiency of their buildings as part of the licensing process. Importantly, they are given flexibility in how they meet the requirements, allowing them to choose upgrades that make sense for their properties.

In at least one community studied, this approach has already led to thousands of rental units becoming more energy efficient.

Other strategies highlighted include:

Incentive zoning, where developers receive benefits for building or upgrading energy-efficient rental housing
Partnerships with nonprofit organizations to reach vulnerable renter populations
Targeted outreach to both landlords and renters to reduce participation barriers

These approaches recognize that solving the rental efficiency problem requires structural solutions, not just voluntary incentives.

Why Rental Energy Efficiency Matters for the Future

Improving energy efficiency in rental housing is about more than saving money or reducing emissions. It directly affects public health, housing equity, and climate resilience.

As extreme weather becomes more common and energy prices fluctuate, inefficient rental housing leaves millions of people exposed to higher costs and unhealthy living conditions. Addressing the split incentive problem is essential if climate and sustainability policies are going to work for everyone—not just homeowners.

The study makes it clear that while awareness of the issue is growing, most renters are still left out in the cold. Without stronger policies, smarter program design, and greater accountability for landlords, the gap between renters and homeowners is likely to persist.

Research Reference:
George C. Homsy et al., Still muddling through: Local sustainability leaders and energy efficiency in rental units, Energy Research & Social Science (2025).
https://doi.org/10.1016/j.erss.2025.104440