Water Expenses Rise 8% in 2022

The rise of fuel costs and its toll on residential buildings has been well-documentedthroughout 2022. Now, residential building owners can be concerned about the rising price of water moving forward.

Through the first five months of 2022, Weber Realty Management has seen water expenses rise 8% year-over-year. Weber Realty manages buildings that range from 8 to 60 units throughout Manhattan. The average amount paid to the Department of Environmental Protection has gone from $2,604 to $3,120 per building managed by Weber Realty.

The most significant increases were a 52% bump from a residential building with a restaurant and spa as well as a 44% jump in a co-op in the Upper West Side.

The 8% increases overall also include one building that saw a 35% decrease due to a restaurant vacating the space and a 50% drop in another co-op, which dealt with drainage issues in 2021.

The DEP’s proposed 4.9% water rate hike will continue to hurt residential buildings’ expenses more. With more and more people working from home, people are using water more than ever. The DEP has reported that delinquent buildings are $778 million behind on water bills. Given the changing reality of the volume that residents use water in Manhattan, expect that delinquent number to sky rocket as operating income for buildings shrink.