💼 Trends
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Trend #1: Homeowner’s Insurance
Home insurance rates climbed 21% from 2022-2023. With higher inflation and increasing damage from natural disasters, this trend is not expected to end anytime soon. Some homeowners struggle to find insurance in higher-risk areas as insurers cease sales.
Trend #2: Renter’s Insurance Policy
A renter's insurance policy is a type of insurance that provides coverage for the personal belongings of tenants renting a property. It typically includes protection against risks such as theft, fire, and certain types of damage. Additionally, renter's insurance may offer liability coverage for accidents that occur within the rented space. It is unclear whether this trend is driven from the bottom-up (renters desiring more protection) or top-down (landlords increasingly requiring insurance).
Trend #3: Cost Segregation
Cost segregation is a tax planning tool that allows real estate investors to accelerate the depreciation of their investment properties. By doing this, they reduce their annual federal and state income tax payments, potentially freeing up their money for other investments or purchases. After the IRS’ phaseout of 100% bonus depreciation at the end of 2022, cost segregation may never be more valuable to taxpayers than it is now.