Developers Feel the Pressure of Rising Insurance Costs
Rising insurance costs are “putting existing affordable housing under serious financial strain and making it more difficult to finance new affordable housing,” according to the New York Housing Conference (NYHC).
A new study by the nonprofit affordable housing policy and advocacy organization reveals that insurance premiums have been increasing an average of 26% annually while coverage is decreasing or difficult to find.
To better understand the issue, data was collected from owners representing more than 130,000 rental units. The study included detailed multiyear data from 12 owners totaling 55,000 affordable units. These owners are paying an average premium of $1,770 per unit in 2023-24, a 103% increase from the 2019-20 average premium of $869, says the report.
In some cases, owners have seen increases as much as 168% and 175% over four years.