For the first time in decades, serious inflation has reared its ugly head. Costs for nearly everything—including the goods and services needed to operate and maintain multifamily properties—are up an average of 10 percent. Some sectors, particularly energy, are up nearly 20 percent. Co-op corporations and condominium associations are in the same boat as individual households, just at a larger scale. Everything is suddenly more expensive. The question is, how to pay for it?
Inflationary Pressure Cooker
“Inflationary pressures affect many aspects of the real estate industry, and it’s top of mind for co-op and condo owners, board members, and managers,” says Ajo Kurian, a senior vice president with AKAM Management, a real estate management firm based in New York City and Florida. “The results of inflation and rising costs are seen everywhere, from basics such as cleaning supplies, to labor costs—consider the recent 32BJ contract for building workers in New York City—and equipment and materials for capital projects.”
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