Renters left behind: why local climate policies struggle to reach 46 million american households

As cities and states lead the charge on climate action, a critical gap is emerging that leaves millions of Americans behind. New research from Binghamton University reveals that local energy efficiency programs consistently fail to reach the nation’s 46 million rental households—roughly one-third of all U.S. homes—creating a significant blind spot in climate policy.

The problem stems from what economists call a “split-incentive” dilemma: landlords own the property but tenants pay the utility bills. This means property owners have little motivation to invest in energy-saving upgrades like heat pumps, efficient appliances, or better insulation, even when subsidies are available. “The issue of split incentives comes up every single meeting,” says Dovev Levine of the New England Municipal Sustainability Network, highlighting how widespread this challenge has become.

The research, which surveyed 59 officials nationwide, found that only half of agencies offered programs specifically targeting rental properties. “We’re kind of writing off this very big sector of the residential market,” noted study co-author Kristina Marty. This gap is particularly concerning since renters tend to have lower incomes and face higher energy burdens.

However, innovative solutions are emerging. Cities like Boston have launched consultation programs to help navigate available resources, while Minneapolis offers up to $50,000 per building for efficiency improvements. Some jurisdictions, like Burlington, Vermont, have turned to regulations requiring gradual efficiency improvements in rentals. Though challenges remain—including state laws that sometimes prohibit local efficiency mandates—experts are optimistic that creative approaches will increasingly bring renters into the climate action fold.