Home Insurance Premiums Impacted Investor Cash Flow, Survey Finds
Eighty-four percent of single-family rental property investors reported that rising home insurance premiums negatively affected their cash flow over the past 12 months, according to a new survey.
A significant majority of single-family rental property investors, 84 percent, stated that increased home insurance premiums have impacted their cash flow over the last year. This finding comes from a survey conducted by ResiClub in partnership with LendingOne.
The survey, which included 216 qualified single-family investors, was fielded between August 17 and September 14. The results indicate growing financial pressures within the rental property sector.
Beyond insurance costs, the survey revealed other investor concerns. Sixty-five percent of respondents anticipate that the average 30-year fixed mortgage rate will remain above 6.5% over the next 12 months. Furthermore, 44% expressed they are "very unlikely" or "somewhat unlikely" to purchase another investment property in the coming year, a notable increase in caution.
Despite these headwinds, nearly 60% of landlords plan to raise rents in the next 12 months, with 31% expecting increases between 1% and 3%. Separately, 37% of landlords indicated they are likely to sell at least one existing property within the next year.