The 2024 NMHC State of Multifamily Risk Survey has found that insurance costs continue to increase, putting added financial pressure on rental housing providers and renters alike. Increases in insurance premiums have further exacerbated an already serious affordability housing crisis in the U.S.
While insurance rates remain significantly elevated compared to historical norms, NMHC’s 2024 State of Multifamily Risk Report finds that the last year brought some stabilization to the property insurance market—marking the first decline in rates since 2017 after 27 consecutive quarters of growth. Despite increasing consistency within the property insurance market, liability lines continue to face significant headwinds, with rising litigation costs, nuclear class action verdicts, and restrictive underwriting practices driving up premiums and forcing housing providers to adapt to a challenging environment.
“These new findings and risk mitigation recommendations come at a critical time for rental housing providers and our residents,” said Sharon Wilson Géno, NMHC President. “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.”
This report provides analysis and discussion that combines quantitative results from an NMHC membership survey with insurance industry expertise provided by FHS Risk Management. It builds on previous findings that indicated premium increases were a result of a multitude of factors, including increased replacement cost valuation and limited capacity within the reinsurance market.
Find the full report here.
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is where rental housers and suppliers come together to help meet America’s housing needs by creating inclusive and resilient communities where people build their lives. We bring together the owners, managers, developers and suppliers who provide rental homes for 40 million Americans from every walk of life—including seniors, teachers, firefighters, healthcare workers, families with children and many others. NMHC provides a forum for leadership and advocacy that promotes thriving rental housing communities for all. For more information, contact NMHC at (202) 974-2300, email the Council, or visit NMHC's website at nmhc.org.
Staff Resource
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