The Future of Cars and Apartments

Electric vehicles are here to stay, but where are the chargers?

By DAVID AARONSON, Refuel Electric Vehicle Solutions

As society adopts electric vehicles (EV), the most pressing question is, "How will the EV be refueled?" Many studies say that the one prohibiting factor in the movement towards EV acceptance is the lack of convenient places to refuel the vehicle. Similarly, when gas vehicles were coming of age, the overriding concern was how to refuel. Today, there are gas stations on every corner providing the infrastructure for gas powered vehicles.

EVs first came on to the scene around 1890 with its popularity really beginning to grow in 1910 as electricity became readily available. However, Henry Ford’s Model T gas-powered vehicle ended the regime of EVs in the 1900s as gas vehicles became two times cheaper than electric.

Additionally, with the discovery of Texas crude oil, gas became cheap and readily available for Americans all over the country. By the mid-1930s, electric vehicles were no longer a player in the automobile industry. That is, until the 60s and 70s, which were filled with gas shortages and increasing gas prices that led to a push into the research and development of EVs once again. As environmental concerns were brought to the forefront in the early 90s, EVs slowly moved back on the scene and never left.

EVs are extremely beneficial to the environment as they minimize greenhouse gas emissions. Tailpipes on gas vehicles emit direct emissions into the air, which include harmful pollutants and greenhouse gas. These emissions significantly affect the air quality, especially in more urban areas. Life cycle gas emissions are produced when petroleum is taken from the ground, refined to gasoline, distributed to stations and then burned in the vehicles.

Similar to direct emissions, life cycle emissions spread harmful pollutants and greenhouse gases to the atmosphere. Since EVs do not have tailpipes, the ability to emit direct emissions into the air is automatically eliminated. While all vehicles, electric or otherwise, do produce life cycle emissions, electric vehicles produce significantly less. Additionally, according to the U.S. Department of Energy, the current prices (at print) of gasoline in Texas is $2.58, whereas an electric eGallon is priced at $1.08, making electric prices much cheaper than gas. While it is obvious that EVs provide exceptional benefits for the environment, what continues to be a driving factor to not install more charging stations is the cost to establish the charging stations based on the revenue it generates. Outside of a few states (i.e., California), most apartment owners and builders that host EV charging stations are doing it as an amenity to their residents. However, as more people adopt EVs as their primary form of transportation, it will become necessary to establish EV charging stations everywhere.

There are currently 56 EV models on the market today, and that number is expected to increase by 400% in the U.S. over the next four years alone. The prices for EVs are coming down and many more will now be affordable to the masses. In fact, an electric vehicle costs 50% to 70% less to operate when compared to a gas-powered vehicle. These cost savings are significant for people living on a restricted budget. Cost savings will also be the driving force in creating demand for EV charging stations in multifamily properties.

Currently, 80% of EV owners refuel at their home, however, as EVs become more accessible, charging stations need to be as well. There are only about 800 charging stations across the greater Houston area, many of which are saturated in the southeast part of the city. EVolve Houston estimates that there will be 600,000 electric vehicles on the Houston roads and about 2 million on the roads in Texas by 2030. As the world continues to embrace EVs, there is an even greater opportunity for multifamily property owners to provide for charging needs. Installing fee-based charging stations can make this initiative profitable to the majority of properties. For companies that want to install and own EV charging stations, the federal government currently offers financial assistance in the form of tax credits to properties that qualify. In addition, many state and local governments and electricity providers offer incentives to companies that install and own EV charging stations. While these jurisdictions offer different enticements for making the investment today, there is no guarantee that these incentives will last forever.

Commercial real estate owners come across roadblocks related to the cost of providing adequate electricity to the charging station. Many properties might not have enough electricity capacity to host an EV charging station, and it can become costly to get it. The EV revolution is here, and it would behoove property owners to consider installing charging stations at the onset of development to ensure electrical needs are appropriately handled.

There are currently two EV chargers on the market that serve multifamily properties well: Level 2 and DC Fast. Most multifamily properties install Level 2 chargers, as they provide 10 to 60 miles of charge per hour, they are ideal for overnight charges and provide an excellent return on the investment. Importantly, there is a difference in the Level 2 chargers. They are not alike, and technology has improved the capabilities of the Level 2 charger. DC Fast chargers are best utilized in heavily commercialized properties where EV drivers receive a meaningful charge in 30 minutes, but they are too expensive for most multifamily properties to generate an acceptable return.

There is a crucial need for accessible charging stations as EVs are only going to become more prevalent. Recently, President Biden has taken efforts to make charging stations accessible as part of his proposed Bipartisan Infrastructure Agreement. President Biden has pledged $15 billion of the budget to place 500,000 EV chargers along highways and rural and disadvantaged communities. One of the qualms of purchasing an EV is the fear of not being able to find charging stations on long distance road trips. This investment could quite possibly eliminate the hesitation of purchasing EVs and set the stage for EV domination across the country. If, and when, this agreement will be passed through the Senate is a pressing issue, but the moral of the story is that the need for EV charging stations is here. And, charging station accessibility needs to be at the forefront of the conversation.

Many states, countries and car manufacturing companies vowed to only sell electric vehicles by 2035. In states like California, new gaspowered vehicles will no longer be sold and will only be able to be purchased as used cars. Multifamily housing and commercial real estate properties will provide the infrastructure to refuel the vast amount of EVs that are projected to be on the road in just a few years. Property owners need to start preparing now for the EV revolution.

David Aaronson recently launched Refuel Electric Vehicle Solutions (REVS) and serves as the organization's founder and CEO. Prior to founding REVS, David was a successful commercial mortgage banker for over 40 years.