Rising Property Insurance Costs: Opportunities for Federal Action

The United States is mired in a housing affordability crisis, largely due to a mismatch between strong demand for housing and limited supply.  In many areas, rising property insurance costs have significantly exacerbated the problem. This white paper examines the main drivers of these increases and their impact on homeowners, as well as on multifamily developers and operators, and outlines several federal policy options to address these challenges.

These policy options are not exhaustive, but they offer a starting point for policymakers who are considering ways in which the federal government can help address rising property insurance costs. A combination of these ideas could have a meaningful impact both in the short and long term. High insurance premiums are straining households nationwide, many of which struggle to obtain adequate coverage amid increasingly devastating natural disasters. The problem will only worsen if it is not properly addressed.