Apartment Industry Contributes $3.4T to National Economy
It’s well-known in the real estate industry that the multifamily sector has been very active during the current economic cycle. And now, a Hoyt Advisory Study indicates that the sector has a huge impact, contributing $3.4 trillion to the national economy. The new report, commissioned by the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC), indicated that apartment resident spending contributes, as a whole, $3 trillion to the economy, while operations add $175.2 billion. New construction and renovations, in the meantime, contribute $150.1 billion and $68.8 billion, respectively.
Other highlights of the report note that:
- A significant portion of existing apartment stock will need to be renovated in the coming years, further boosting spending.
- Hoyt Advisory Services’ previous research indicated that 328,000 units would need to be built, per year, at varying price points, to meet existing demand.
- All four industry sectors (construction, operations, renovation and resident spending) have posted strong growth, with the construction industry reaching a height of 346,900 completions in 2017, up from 129,900 in 2011.
- Additionally, tax payments associated with apartment operations, as well as tax payments by apartment residents, contributed $408.9 billion to the national economy.
“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,” said NMHC President Douglas M. Bibby. “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.
Added Robert Pinnegar, NAA president: “The multifamily industry is an economic engine powering the economy very significantly at the national, state and local levels. “This clearly illustrates the tremendous positive impact our apartments have on the communities they serve.”
For comments, questions or concerns, please contact Amy Sorter
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