Newer apartments take more to run. Again, rents, values and taxes play a large role, as do unit sizes, and amenities. What a difference time makes. Oh well, we all know costs tend to rise over time. The average compound annual rate of increase over the past ten years was 4.3 percent.
Expenses don t tend to move upward at a steady pace.
Much of the increase occurred between 1989 and 1993. Then cost increases moderated, until 1998. Costs jumped 11 percent in the past two years alone. Even though we expect the rate of expense increase to moderate, there are caution signals. These include potential increases depending on government action on real estate taxes and utilities, property and consumer demands pushing repairs and capital expenses, and tectonic plate action driving insurance costs higher for the cautious.