Insurance Crisis Driving Up Rent Costs, Threatens Affordable Housing Nationwide
FOR IMMEDIATE RELEASE
May 19, 2026
Contact: contact@insurancefairnessproject.com
Insurance Crisis Driving Up Rent Costs, Threatens Affordable Housing Nationwide
Experts warn rising premiums are surging rent costs, delaying construction, and deepening the nation’s housing affordability crisis
Watch the recording here.
Earlier today, the Insurance Fairness Project and the Climate and Community Institute hosted a joint press conference with housing, insurance, and climate experts to discuss a new report, Insurance: The Hidden Market Force Threatening Affordable Housing, on how rising insurance costs are reshaping the U.S. rental housing market.
“Our research finds that each step in the affordable housing development and operations timeline is prone to be impacted by rising insurance costs and unavailability,” said Alexandra Casey, Research Fellow at CCI and lead author of the report. “This can result in mounting problems that deepen the housing affordability crisis and decrease housing quality for tenants.”
Experts discussed key findings from the report, which showed that multifamily housing providers are facing steep increases in property and liability insurance costs and reduced availability of coverage, resulting in rising rents, deferred maintenance, and a slowdown in new housing development.
Speakers also highlighted how insurers are increasingly gaining disproportionate influence over housing outcomes through underwriting decisions, effectively shaping what gets built, where development occurs, and which properties receive investment.
"Rising insurance costs are significantly threatening the development and sustainability of affordable housing and limiting options for low-income families," said Mandy Pant, Director of Real Estate Development and Asset Management at the American Indian Community Development Corporation. "Between 2022 and 2023, property insurance costs increased by 25% across AICDC portfolio and it continues to be an incredibly challenging market at a time when developers like us are struggling to preserve deeply affordable housing."
“This report confirms what we have long known: skyrocketing insurance costs are putting affordable housing at risk and impeding much-needed building upgrades," said NYC Housing Preservation and Development First Deputy Commissioner Adam Phillips. “In New York City, we are working proactively to address this issue by investing in a city-backed insurance plan that will reduce building operating costs. By tackling one of the biggest operating expense cost drivers, we can make significant progress in ensuring that everyone has access to affordable housing they deserve.”
Participants emphasized that affordable housing providers are among the most vulnerable as this crisis continues to deepen, with limited budgets and financing structures leaving little room to absorb rising insurance costs, putting additional pressure on low- and moderate-income renters.
“CCI’s research makes clear that this is not just a homeowner issue. It is a renter issue as well,” said Jessica Borbee, a spokesperson for the Insurance Fairness Project. “Rising insurance costs for both property and liability coverage are putting significant pressure on multifamily housing developers and operators, the entities responsible for housing more than 100 million renters nationwide. As insurance becomes more expensive and, in some cases, harder to obtain at all, those costs are being absorbed across the housing system and ultimately passed through to tenants in the form of higher rents, deferred maintenance, and reduced housing stability.”
“Tinkering at the edges will not solve this country’s insurance crisis and how it exacerbates our affordable housing crisis. Instead, we must stop corporate greed and create public programs that provide adequate, affordable, and available insurance coverage for all types of housing,” said Moira Birss, Senior Fellow at Climate and Community Institute and report co-author.
Read the Insurance: The Hidden Market Force Threatening Affordable Housing report here.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
