Financial Planning Snapshot
The Foundation for Community Association Research provides this snapshot to help boards, managers, and professionals navigate inflation trends affecting operations, capital projects, and reserve funding.
Inflation Financial Planning Snapshot—Year End 2024
Why it matters
Inflation affects everything from janitorial and landscaping contracts to concrete, roofing, elevators, and professional services. Understanding which indicators to watch—and how they differ—can improve budget accuracy and project timing.
Key takeaways
- Look beyond CPI. For construction- and materials-heavy work, Producer Price Index (PPI) may better reflect near-term cost changes than CPI.
- Labor is tight. Community association labor and vendor rates have risen faster than broad inflation in many markets.
- Protect reserves. Inflation erodes cash purchasing power; evaluate project timing, phasing, and financing strategies.
- Adjust assumptions. Review inflation factors in reserve studies, contracts with escalation clauses, and multi-year capital plans.
- Work with experts. Coordinate with your reserve specialist, engineer, and accountant before making changes.
How to use this snapshot
- Benchmark your current inflation assumptions against recent trends.
- Stress-test multi-year budgets for labor and materials sensitivity.
- Revisit timing for major capital projects and sourcing strategies.
- Communicate clearly with homeowners about drivers of cost changes.
Frequently Asked Questions
What’s included?
A one-page briefing with trend indicators, year-over-year changes, and 5–10 year context plus planning considerations.
May we quote or reprint?
Yes, with attribution to the Foundation for Community Association Research and a link back to this page.
Who can I contact?
Suggested citation
Foundation for Community Association Research. Inflation Financial Planning Snapshot—Year End 2024. Updated March 27, 2025.