BETHESDA, MD—Anyone aiming to strike gold in America's housing market would be wise to focus on another color as well: green. With substantial benefits to businesses, consumers and the planet, green development is on the rise. Thanks to discounted financing, developers have more reasons than ever to enter this territory.

GSE powerhouses Fannie Mae and Freddie Mac both launched discounted loan programs in 2016 to incentivize investments in green multifamily properties. By the end of Q2 2017, investments in the Fannie Mae portfolio alone generated enough electricity and water savings to power 31 million cell phones for a year and save 15.6 billion glasses of water—over two glasses for every person on Earth.

Of the 9.4 million in total household growth between 2006 and 2017, 9.2 million were renter households. (Sources: U.S. Census Bureau, Current Population Survey/Housing Vacancy Survey, Freddie Mac)