Weathering the Storm: Managing Property Insurance Costs in Multifamily Affordable Housing
High housing development and operation costs threaten the availability and production of multifamily affordable housing in the US. Additionally, inflation, frequent climate disasters, reinsurance markets, and weak regulatory oversight contribute to rising and volatile property insurance costs and availability.
Many regions are far from meeting their housing affordability goals, making it increasingly urgent to lessen the cost barrier posed by insurance to the development and maintenance of affordable properties. Difficulty with insurance costs is primarily discussed in the context of single-family homes. However, it is also necessary to address insurance cost volatility for multifamily and affordable properties. Given this context, this paper seeks to address the following question: What strategies can multifamily affordable housing organizations use to manage high property insurance rates?
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The Harvard Joint Center for Housing Studies strives to improve equitable access to decent, affordable homes in thriving communities. We conduct rigorous research to advance policy and practice, and we bring together diverse stakeholders to spark new ideas for addressing housing challenges. Through teaching and fellowships, we mentor and inspire the next generation of housing leaders.
