Rent Growth No Longer Covers Costs: Apartment Owners Face a Margin Squeeze
U.S. apartment owners are facing a margin squeeze, KeyCrew reported November 12: new supply and softer demand mean the market is only tolerating rent increases of 1% to 2% this year, while insurance and utility costs keep climbing by double digits.
Bill Douglas, CEO of OpticWise, said insurance costs per unit rose about 55% between 2021 and 2024. Because property values are tied to net operating income, thinner margins also affect sale and refinancing prices.
Industry voices advise owners to start with utilities, insurance and occupancy, the three areas most directly tied to net operating income.
Source: KeyCrew
Published by GSM · USA (original Chinese edition)
Photo: 图：美国得克萨斯州 Lubbock 的 North Overton 公寓楼群（资料图）。Fredlyfish4 摄，维基共享资源 CC BY-SA 3.0。 / Photo: Apartment buildings in North Overton, Lubbock, Texas (file photo). Photo by Fredlyfish4, Wikimedia Commons (CC BY-SA 3.0).
