Apartments contribute $3.4 trillion to the economy
Apartment Industry & Its Residents Contribute $3.4 Trillion to the National Economy
WASHINGTON, D.C. – A new Hoyt Advisory Study commissioned by the National Apartment Association (NAA) and National Multifamily Housing Council (NMHC) reveals that the apartment/multifamily industry and its residents annually contribute more than $3.4 trillion to the national economy. The new report, available at WeAreApartments.org, provides a detailed breakout of the economic impact nationally, by state, and in 50 metro areas.
New data shows how different aspects of the apartment industry positively impact national, state and local economies. Resident spending contributes $3.0 trillion to the U.S. economy, while operations adds $175.2 billion. New construction contributes $150.1 billion and renovation and repair adds $68.8 billion.
Highlights from the report include:
“The apartment industry’s contribution is one that has grown in recent years, fueled by increased rental demand overall as population and employment growth continue and renting becomes a preferred tenure choice for millions of Americans,” said Eileen Marrinan, Managing Director of Eigen 10 Advisors, which partnered with Hoyt.
“Construction is still moving ahead, as there’s a need for additional apartments in many states. And, due to an abundance of aging stock, there’s a growing need for renovations and improvements on existing apartment buildings. Construction and renovation/repair will provide a sizable boost in jobs – and the economy – nationwide, and will continue to be a hefty contribution to the country’s economy for decades,” said NMHC President Douglas M. Bibby.
“The multifamily industry is an economic engine powering the economy very significantly at the national, state and local levels,” said NAA President Robert Pinnegar. “This clearly illustrates the tremendous positive impact our apartments have on the communities they serve.”
This study provides data to back up the assertion that the apartment industry contributes to national, state and local tax economies. Tax payments associated with apartment operations, as well as tax payments by apartment residents, contributed $408.9 billion to the national economy. These taxes support schools, improvements to local infrastructure and other critical services in communities across the country.
Based on research conducted by Hoyt Advisory Services and commissioned by NAA and NMHC, the data includes insights into the apartment industry’s economic impact in the United States, the 50 states and 50 metro areas, including the District of Columbia. For the purposes of this study, apartments are defined as rental apartments in buildings with five or more units. The data are available on the website www.WeAreApartments.
* * *For more than 25 years, the National Apartment Association (NAA) and the National Multifamily 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 150 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of rental housing industry. Apartments and their 39 million residents support more than 12 million jobs and contribute $1.3 trillion to the economy.