WASHINGTON — The multi-family housing “rental boom” is contributing to the overall growth of the economy and local communities, according to data from research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA).
Fueled by demographic changes—like the “burgeoning Millennial population” and rediscovery of metropolitan urban communities—the apartment industry and its 36 million residents contributed $1.3 trillion to the U.S. economy and supported 12.3 million jobs in 2013, according to the study.
Led by economist Stephen S. Fuller, Ph.D., of George Mason University’s Center for Regional Analysis, the research analyzed the economic contribution of apartment construction, operations and resident spending on a national level.
The study found that apartment construction is on the rise, calling it the “most visible sign of the rental resurgence.”
In fact, apartment construction contributed $93 billion to the national economy in 2013, with $30 billion going directly into the paychecks of more than 700,000 workers, according to the study.
“Our study showed major increases around apartment construction, with spending, economic contributions and personal earnings from construction all rising substantially,” says Fuller. “The construction for multi-family apartment buildings is a significant and growing source of economic activity, jobs and personal earnings in communities nationwide.”
Apartment construction has been increasing over the past five years, according to the NMCH and NAA. In 2013, there were 294,000 construction starts, compared to 97,000 in 2009.
“The great news about the apartment industry is that the dollars and jobs don’t end with construction,” says NAA Chairman Tom Beaton, senior vice president, management, The Dolben Co.
“The ongoing operations and resident spending make each apartment community an economic engine, supporting local jobs and making a positive economic impact in towns across the country,” Beaton adds. “The number of apartment residents is growing, from 36 million when the study was conducted in 2013, to 37 million today, meaning more dollars and jobs in the years ahead.”
Detailed results of the study can be found at www.WeAreApartments.org.
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