According to the Institute of Real Estate Management (IREM)—which studied the financial data from 2,214 properties in the United States and Canada, representing 290,807 units over the course of two years—the annual median total operating expenses per unit in condominiums are on the rise.
The median total operating expenses for all the types of property amounted to $2,649.76 per unit, a 5.3% increase from 2013. And while high-rise properties reported the highest expenses ($4,732.80) and highest rate of change (10.7%), low-rise properties increased 6.6% to $2,561.31. Combination properties experienced the smallest growth (0.2%).
Rising rents have been on everybody’s mind and radar for months, but IREM’s research sheds a ton of light on the reasons for this. We’ll have to see if an increase in multifamily property supply will bring down costs as well as rents.
To download the complete report, click here.
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