Newsletter: March Pulse Check
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At the NAHB IBS meetings in Las Vegas earlier this month, insurance, insurance premiums, and retained risk were major topics of discussion among multifamily developers and owners.
And it is no wonder. Multifamily property rates have gone up every quarter for the past twenty-five quarters. Seventy-eight percent of apartment owners saw a greater than 10% increase in premiums from 2022 to 2023. One-third saw increases of 25% or more. Coverage that used to require three or four layers now routinely takes thirty or more. While pricing is said to be stabilizing, higher rates, driven by severe convective storms (think hurricanes and tornadoes) and $1 billion losses, are here to stay.
About AGM Financial
Founded in 1990, AGM is a leading FHA lender and GNMA seller/servicer. From new construction and substantial rehab to acquisition or refinance — for both market-rate and affordable projects — AGM gets the deal done. Family-owned with over 30 years of experience, the firm has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.
