Rising Insurance Costs Threatens Affordable Housing Across the Nation
Wes Frazer for The New York Times
Rising property insurance costs threaten affordable housing across the U.S., particularly in coastal states hit by severe weather. Nonprofit organizations, crucial in providing low-income housing, are struggling as insurance premiums soar, forcing them to sell properties or abandon projects. For instance, in Houston, affordable housing units are being sold to landlords who then increase rents to market rates, while in Selma, Alabama, exorbitant insurance costs are making subsidized homes out of reach for potential buyers. Rising home prices and frequent natural disasters exacerbate the crisis. Efforts to address this include proposals for federal support and better building practices. The insurance industry’s insistence on higher premiums reflects increased risks from more frequent extreme weather events, adding to the overall affordable housing crisis.
