According to the article, insurance cost is about 7% of a property’s total expense budget. But property insurance expense has increased by a whopping 27.7% for the year ending January 2024. And since 2018, the cost of insurance has risen by 129% nationally to average per unit expense of $636, based on a survey of 20,000+ properties. While increases in expenses were more than offset by improved rental revenue, the study suggested that rent growth in 2024 will be well below growth realized in the previous year. The article cites, as of January 2024, the average overall total expense for a multifamily unit increased by 7.1% from 2023 to $8,950.

 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

Please find us at svikhart.com or contact us at 801-550-5684 to learn about the real estate services the firm provides. To subscribe to the firm’s newsletter addressing events of the day please follow this link Newsletters.