The last thing any developer wants is to get all the way through a multi-family project—site acquisition, design, and even construction—only to discover that insurance coverage is denied or premiums are far higher than expected. For multi-family housing especially, crime risk isn’t just a community concern; it’s a financial one.
CrimeRisk data is already widely used by insurance companies to assess property risk. If they’re using it to make underwriting decisions, developers should use it earlier in the process to avoid costly surprises.
Insurance underwriters, lenders, and investors all pay attention to crime statistics when evaluating a property’s viability. High crime projections in a neighborhood can affect everything; insurance availability and cost, to financing terms, and even the property values themselves can all be influenced by these scores. Additionally, tenant demand-both retail and residential-can be impacted by high crime, which in turn has major financial implications. Understanding crime risk isn’t just about safety; it’s about protecting the financial health of the project.
Many developers focus on current crime levels without considering what those numbers might look like when their property is completed and leased. Multi-family projects typically take years to move from planning to occupancy, which makes 5-year projections critical. AGS CrimeRisk offers forward-looking data that estimates how crime patterns are likely to evolve based on demographic shifts, economic trends, and historical crime reporting. With this data, a developer can avoid sites where crime is projected to worsen significantly, identify up-and-coming neighborhoods where risk is trending downward and confidently compare multiple sites with an eye toward long-term performance.
Imagine a developer evaluating two potential sites for a new apartment complex:
- Site A is in a neighborhood with relatively low crime today, but projections show a sharp increase in violent crime over the next five years.
- Site B currently has moderate crime, but projections point to decreasing rates as new investment and infrastructure improvements take hold.
At first glance, Site A might look like the better option—but when insurance carriers run their models, they’ll see those projections too. Choosing Site B could mean smoother financing, more favorable insurance terms, and better tenant attraction long term.
Crime shouldn’t be analyzed in isolation. By layering CrimeRisk data with other variables—demographics, household growth, renter-to-owner ratios, income levels, and even consumer spending—developers can build a much more complete picture of a site’s future potential.
For example, areas with younger renter populations, rising income levels, and planned commercial growth may also see crime risk shift positively over time. Pairing these insights helps developers identify neighborhoods that balance opportunity and risk.
Insurance companies rely on third-party data like AGS CrimeRisk to set their underwriting standards. If they’re evaluating your project this way, it only makes sense to evaluate your own opportunities with the same lens. Developers who skip this step may find themselves caught off guard later—paying higher premiums, forced to switch carriers, or unable to secure coverage at all.
If you’re planning a multi-family project, don’t wait until an underwriter tells you the news. Evaluate crime risk early, compare sites wisely, and use the same data insurers already trust.
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