Rental housing owners, operators and developers have been greatly impacted by the sharp rise in insurance costs, according to the National Multifamily Housing Council (NMHC). Respondents in NMHC’s 2023 State of Multifamily Risk Survey and Report reported an average increase of 26% over the past year.
“These findings and risk mitigation guidance come at a crucial time for multifamily businesses as well as our residents,” said Sharon Wilson Géno, President of NMHC. “The combination of high interest rates, rising costs and growing need for affordable housing emphasizes how important it is that both providers and policymakers understand insurance market challenges.”
Insurance expenses also threaten multifamily firms’ ability to attract investments necessary to address national housing affordability issues. The council has called on legislators to incentivize a more robust insurance/reinsurance market within this sector.
