NMHC: Rising Insurance Costs Exacerbate Housing Affordability

Insurance costs for multifamily properties continue to increase, putting added financial pressure on rental housing providers and renters alike, the National Multifamily Housing Council (NMHC) said Thursday. Increases in insurance premiums have further exacerbated an already serious affordability housing crisis in the U.S., according to NMHC. 

Although rates remain significantly elevated compared to historical norms, NMHC’s 2024 State of Multifamily Risk Report finds that the past year brought some stabilization to the property insurance market, for the first decline in rates since 2017. Nonetheless, liability lines continue to face significant headwinds, with rising litigation costs, nuclear class action verdicts and restrictive underwriting practices driving up premiums. 

“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 current confluence of high insurance costs, interest rates and construction and material costs make the development and operation of rental housing a financial challenge. A more stable insurance market will help keep costs in check, which, in turn, will improve housing affordability and potentially lower rental housing costs for residents.”