“For instance, if you use the economic impact calculator to determine how 100 new apartments would stimulate Pennsylvania's economy, you'd quickly see it would boost that state's bottom line by more than $24 million. In New York, 100 apartments would increase the state's economy by more than $21 million”
“This new, user-friendly calculator tool spotlights the economic impact of the apartment industry on a local, state and national level. It also demonstrates how the economic boost goes beyond the jobs created through construction of new units – it's sustained over the long-term through ongoing operations and resident spending," said economist Stephen S. Fuller, Ph.D., of George Mason University’s Center for Regional Analysis, who drafted the report based on his extensive research. "The apartment industry is generating $1.1 trillion per year – or $3 billion per day – and this new impact calculator helps determine how apartment buildings boost local and national economic activity through job creation, operational budgets and residents' spending habits."
"For instance, if you use the economic impact calculator to determine how 100 new apartments would stimulate Pennsylvania's economy, you'd quickly see it would boost that state's bottom line by more than $24 million. In New York, 100 apartments would increase the state's economy by more than $21 million," Fuller continued. "The tool clearly shows the number of jobs supported, dollars spent on operations and construction, as well as residents' spending power, broken out by state."
Fuller has worked with NAA and NMHC to release a new report outlining the economic contribution of the multifamily housing industry on a national level plus in all 50 states. In addition, construction and operations data is available for 12 metro areas: Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York City, Philadelphia, Seattle and Washington, D.C.
Highlights from the report include:
- The combined contribution of apartment construction, operations and resident spending equals $1.1 trillion, or more than $3 billion every day.
- Even during a year with one of the lowest multifamily completions on record (just 130,000 new units), the apartment industry still spent $14.8 billion on construction in 2011. In comparison, pre-recession, the average was 270,000 completions.
- The industry spent $67.9 billion in 2011 to operate and improve the country’s 19.3 million apartments—more than four times the amount spent on construction—creating a $182.6 billion economic contribution supporting 2.3 million total jobs.
- The country’s 35 million apartment residents spent $421.5 billion on goods and services in 2011—70 percent of which stayed within the local economy. The spending created a total economic impact of $885.2 billion supporting 22.8 million jobs nationwide.
In conjunction with the study’s release, the new website www.WeAreApartments.org breaks down the data by state – and the 12 metro areas – through an interactive map.
“Our new calculator tool is helpful in determining the tremendous economic impact of the apartment industry by state, and the numbers are powerful. Anyone can use this feature to calculate exactly how much of an impact apartments have on our states' economies, and it's easy to see how apartments play such a critical role in creating jobs, as well as boosting spending, both in states and nationwide," said NAA Chairman of the Board Alexandra Jackiw, CPM, CAPS, managing director of residential client services at McKinley, Inc. "Apartments are making a major contribution to our economy now, and will continue to do so in the future."
“Even during the down economy, the $1.1 trillion multifamily industry has thrived, and experts predict that this industry will continue to expand over the coming years. The multifamily housing market is a valuable contributor to our country's economy, providing jobs, stimulating spending and, of course, creating comfortable homes for millions of people," said NMHC Chairman Thomas S. Bozzuto, CEO, The Bozzuto Group. "We've known that the apartment industry was vital to our economy, but I’m delighted to see it quantified for the first time as it is in this report and see how apartments boost our nation's bottom line."
For more information, to access the economic impact calculator or to download the report “The Trillion Dollar Apartment Industry”, visit www.WeAreApartments.org.
For more than 20 years, the National Apartment Association (NAA) and the National Multi Housing Council (NMHC) have partnered on behalf of America’s apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of multifamily rental housing. Apartments and their 35 million residents support more than 25 million jobs and contribute $1.1 trillion to the economy. To learn more about apartments, visit www.WeAreApartments.org.