**Rising Insurance Costs Add Pressure to Housing Affordability, NMHC Reports**
Insurance costs for multifamily properties continue to rise, placing additional financial strain on both rental housing providers and renters, according to the National Multifamily Housing Council (NMHC). The increasing premiums are further exacerbating the ongoing housing affordability crisis in the United States.
While insurance rates remain significantly higher than historical norms, NMHC’s 2024 *State of Multifamily Risk Report* indicates that the past year has brought some stabilization to the property insurance market, marking the first decline in rates since 2017. However, liability coverage continues to face major challenges due to rising litigation costs, large class-action verdicts, and restrictive underwriting practices, all of which are driving premiums upward.
“These new findings and risk mitigation recommendations come at a critical time for rental housing providers and our residents,” said NMHC President Sharon Wilson Géno. “The combination of high insurance costs, interest rates, and rising construction and material expenses makes both the development and operation of rental housing increasingly difficult. A more stable insurance market could help control costs, ultimately improving housing affordability and potentially reducing rental expenses for residents.”
