UTILITY RATES EXPECTED TO RISE IN 2022 Nationwide, property owners should expect across-the-board utility increases in 2022 with some jurisdictions expected to see double-digit rate hikes. Natural Gas Natural gas prices are also expected to rise with international markets willing to pay a higher rate for this U.S.-produced energy source. Domestic demand is also on an upswing with those areas most impacted by climate change increasing their need for heating and cooling. In fact, cooling devices like fans and air conditioners comprise the largest percentage of residential energy use. Water Water rates vary enormously depending on the area with typical water and sewer rates under $50 a month in cities like Memphis and Phoenix and over $200 a month in Seattle and San Francisco. But no matter the municipality, over the long-term, rates are up substantially from an average of $39 per month in 2001 to over $100 today. Interestingly, demand for water has actually dropped significantly since an all-time high in the 1980s, according to the U.S. Geological Survey. But the aging water and wastewater infrastructure and the increasing capital and operational costs that drove these rates higher over the last two decades are unlikely to change in the years ahead. That means we can expect to see water rates climb into 2022 and beyond. Waste Removal Much like water, the underlying issues driving rates up in the waste removal industry are likely to keep rates high moving forward. The biggest issue is that China is no longer interested in purchasing much of our scrap, turning a former profit center into an increasingly expensive endeavor. With recycling stacking up, there are higher employment costs since more people are needed to separate the dwindling percentage of still-valuable reusable materials from the rest. This is while the waste industry is seeing an active labor shortage, which means waste haulers need to provide higher pay and better benefits to bring in drivers and other staff. As these expenses rise and recyclable profits plummet, expect more fees and higher prices for recycling.
Energy According to the U.S. Energy Information Administration, rates have gone up six out of the last eight years and 2022 is expected to be no different.
NOW IS THE TIME FOR RUBS We don’t know everything about what 2022 will bring, but it’s clear that the combination of increased rental restrictions and utility rates means that there is no better time than the present to implement RUBS at your properties.
DANIEL SHARABI CEO & Co-founder Livable
Daniel Sharabi is the CEO & Co-founder of Livable, a utility management company with software solutions designed to save money, as well as the environment. Daniel’s immersive experience working within a multitude of sectors in Silicon Valley offers a homegrown advantage in his vision of leveraging technology to provide benefits for all: the property owner, property manager, the tenants, and our environment. To find out what Livable can do for your property check out livable.com or call 877-789-6027.
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