Water is one of the largest and most unpredictable expenses in affordable housing. Yet more than half of it is lost to invisible leaks, primarily from running toilets, water heaters, and faulty fixtures. This waste drains 390 billion gallons and $5.8 billion from the industry every year, eroding NOI, weakening underwriting accuracy, and limiting financing potential.
Why water matters now more than ever.
Water costs are rising faster than any other utility — 2.5x the rate of inflation. At the same time, most current underwriting models underestimate real-world consumption and or build inefficiencies into assumptions. The result? Unreliable budgets, lower returns, and missed financing opportunities.
Affordable housing developers, lenders, and investors can no longer afford to ignore water performance.
The opportunity in water optimization.
By eliminating invisible leaks through real-time monitoring and proactive management, affordable housing can:
- Reduce water use and costs by up to 60%
- Stabilize NOI and strengthen debt coverage ratios
- Improve underwriting reliability for new development and acquisitions
- Unlock long-term value at recapitalization and disposition
The impact goes beyond financials: lowering consumption reduces strain on local utilities, conserves scarce water resources, and supports long-term affordability for residents.
ION’s End-to-End Water Management solution.
At ION, we’ve spent more than a decade helping affordable housing developers solve their water challenges. Our End-to-End Water Management platform makes invisible water loss visible, measurable, and manageable. Through data-driven insights and automated work orders, our partners have reduced water consumption to just 30–40% of the industry average across more than 100,000 units.
Changing the future of affordable housing.
Water optimization is no longer just an operations issue, it’s a financial and community imperative. Developers and investors who integrate advanced water management into every stage of the property lifecycle are not only protecting NOI, they are also creating more resilient, sustainable communities.
At ION, we’re proud to deliver the affordable housing industry’s first End-to-End Water Management solution, a proven way to prevent waste, stabilize operating costs, and unlock lasting value.
Download the full white paper here to see the data, case studies, and financial impact in detail.
