The multifamily housing sector continues to face increasing operating costs, further exacerbating the ongoing housing affordability crisis in the U.S. One of the primary contributors to this pressure has been the sharp rise in insurance premiums, which have added financial strain on housing providers and renters alike. Although 2024 marked the first decline in property insurance rates since 2017, our State of Multifamily Risk Survey & Report highlights that challenges persist, particularly within liability insurance, where rising litigation costs, nuclear verdicts and limited underwriting capacity are driving premium increases.
Buy Now
NMHC Member Price: $500 | Non-member Price: $1,000
NMHC Member Price: $500 | Non-member Price: $1,000
If you are a policymaker or member of the press and would like to gain access to this report, please contact Colin Dunn.
Key Findings:
Download Key Findings
- Insurance Premiums: The property insurance market has seen its first decline since 2017, after 27 consecutive quarters of rising rates. However, insurance costs remain high, placing added financial pressure on multifamily housing providers.
- Liability Insurance: Legal costs, including nuclear verdicts, continue to increase, contributing to the rising premiums and forcing owners to adapt to a more expensive and uncertain liability insurance environment.
- Exposure to Catastrophic Events: A significant number of respondents indicated their properties are located in catastrophe-prone areas, such as California, Texas, Florida and Louisiana.
- Risk Management and Policy Response: With the rising cost of insurance, a strategic approach to risk management is essential. Policymakers should incentivize a more robust insurance and reinsurance market to ensure multifamily housing providers can access affordable coverage, and reform the National Flood Insurance Program to mitigate property risks.
NMHC Member Price: $500 | Non-member Price: $1,000
