How Is Inflation Impacting Property Maintenance Costs?
Commercial landlords with multi-family residential and other commercial real estate units under their possession are always looking for ways to keep their property management’s costs down. However, with inflation on the rise, this is becoming increasingly difficult. In this blog post, we will take a look at how inflation is impacting property maintenance costs.
The Impact of Inflation on Property Maintenance Costs
The Consumer Price Index from the U.S Bureau of Labor Statistics recorded an increase in January 2022, with prices climbing 7.5%. This is higher than any other year since 1982.
Property maintenance projects have already been taking longer to complete and costing more due the labor shortage that we’ve seen over recent years. The increased inflation rate is only making this problem worse! These projects often come with higher costs and longer wait times, which could translate into a costly mistake if you don't account for them ahead of time.
High prices are great for renters who can finally afford to own their homes or retailers looking for commercial real estate in good locations, but what about those looking in the market right now? The high cost of living means you need an investment property with good ROI.
A lot goes into making your house or commercial property pay off - so don't forget that when choosing where or how it's built! Projects like kitchen remodels and flooring upgrades will provide you with more than enough money back for your investment while also giving an improved living space that benefits everyone in the family.
Multi-family residential complex owners should be interested in knowing that household furnishing and home improvement prices are rising faster than those of other non-house-related goods. Some of the price surges include:
Appliances: 8.5% year over year, 1.5% month over month.
Floor Coverings: 7.2% year over year, 0.8% month over month.
Window Coverings: 16.2% year over year, 1.8% month over month.
Dining Room/kitchen/living room furniture: 19.9% year over year, 2.2% month over month.
Bedding/furniture: 17% year over year, 2.4% month over month.
Lamps, decorator items, and clocks: 6.3% year over year, 2.7% month over month.
Bedroom furniture: 13.7% year over year, 1.8% month over month.
Property Maintenance Team PA, MD, NY, FL, NJ, and DE
This was our take on how inflation is impacting property maintenance costs. If you’re a commercial property owner with retail centers, shopping centers, etc. under your ownership, the market insights discussed above should be of great help to you.
Contact the team at Milbrook Properties to learn about how they can help maintain and manage your commercial and/or residential properties.