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Utility Management Advisory

Have You Been Paying Attention to the Price of Water

Posted on April 27, 2017

The average monthly cost of water for U.S. consumers went up 6% in 2015 and has risen 41% since 2010, according to Circle of Blue, an industry research group.  “We expect water rates to continue to grow above inflation for some time.  We don’t see an ends in sight” says Andrew Ward, Director of U.S. Public Finance from Fitch Ratings.

 

As conservation efforts take hold, residential water use is dropping (7% between 2005 and 2010).  This only exacerbates the problem, because the majority of infrastructure costs are fixed, so water rates will have to continue to rise to increase revenues.

 

For a typical family of four using 100 gallons per person per day, the monthly charges for water, sewer, and stormwater are $325.52 in Atlanta and $309.72 in Seattle, the highest in the country.  This also impacts multifamily residents, and as rates rise it will have an impact on rental revenues, considering that water rates will continue to rise even in a down market.

 

For more detailed information, see the article below:

 

http://www.circleofblue.org/2015/world/price-of-water-2015-up-6-percent-in-30-major-u-s-cities-41-percent-rise-since-2010/

  • multifamily
  • water usage

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