
NMHC: Insurance Costs for Operators Up 26% Over Past Year
Owners, operators and developers of rental housing have been hit hard by dramatically rising insurance costs, the National Multifamily Housing Council said Monday. Insurance costs have risen by an average 26% over the past year for respondents in NMHC’s 2023 State of Multifamily Risk Survey and Report.
“These new findings and risk mitigation guidance come at a critical time for multifamily businesses and our residents,” said Sharon Wilson Géno, NMHC president. “The current confluence of high interest rates, increasing costs and an expanding need for affordable and attainable housing highlight the importance of housing providers and policymakers having a clear understanding of insurance market challenges.”
Further, NMHC said the ability of multifamily firms to attract investments required to help address the nation’s housing affordability crisis is put at risk by out-of-control insurance costs. The council called on lawmakers to incentivize a more robust insurance and reinsurance market for the sector.
- ◦Financing