The electronic vehicle conundrum

By: J. David Chapman/February 8, 2024

At the last Edmond Alliance meeting of business leaders, commercial developers, and property owners, I was involved in a conversation regarding electronic vehicle (EV) provisions and requirements needed in our cities, properties, and businesses.

If you pay attention to national news, it would seem that the EV craze was over before it got started. Just as we were considering how to handle their arrival, it might be worth reconsidering their true impact. The headlines indicate that there are EVs sitting on lots, production is being cut, and cold weather issues and lack of charging infrastructure are causing consumers to reconsider the switch to electric from gas.

Then you read news of the current administration pushing for a clean vehicle tax credit and installing 500,000 chargers nationwide by 2030. So, what do you do if you are a multifamily operator, local municipality, or business owner? Should you be adding charging stations, putting charging stations in public parking, and adding charging stations to your requirements when leasing commercial space? Can gas-powered vehicles be allowed to park in spots with charging connections. If not, then it will increase the number of parking spots.

I am keeping an open mind and watching closely for the implications to the built environment for the implementation of electric vehicles. While demand for these vehicles clearly softened in 2023, I believe vehicle manufactures will find ways to sell more EVs in 2024. My opinion is they are not going away. I also feel they aren’t going to have the quick impact we once thought we might see. I retain the prerogative to change my mind, but my current belief is that the best place to charge these vehicles is at home. I am seeing significantly more demand from homeowners for charging stations than from renters. In fact, currently most EV owners are homeowners and relatively few renters own EVs.

For manufacturers to reach goals in the future, they will have to crack this renter/driver market (approximately one-third of Americans) and move beyond those who own their own home. The problem is the home-owner controls the installation of the charging station at their home. The renter rarely has any control of the installation of that infrastructure and it is up to the property owner. Our country is facing a housing affordability problem and adding charging stations is certainly not going to help lower the price per square foot of the sales price or cost of rental.

David Chapman is professor of finance and real estate at The University of Central Oklahoma (jchapman7@uco.edu)