2014

Study: Apartment Construction and Operations Contributed $19.8 Billion to New York City Economy

New York State received $129.4 billion economic contribution from the combined construction, operation and resident spending, says new report "The Trillion Dollar Apartment Industry"

WASHINGTON, Feb. 12, 2013 /PRNewswire-USNewswire/ -- Despite the worst economy in a generation, apartment construction and operations contributed $19.8 billion to the metro New York City economy in 2011 supporting 151,000 local jobs, according to a new report released today by the National Multi Housing Council (NMHC) and the National Apartment Association (NAA). In addition, apartments and their residents contributed $129.4 billion to New York State's economy supporting 3 million jobs. The report, along with an interactive map and economic impact calculator, is available on the new website www.WeAreApartments.org.

Based on research by economist Stephen S. Fuller, Ph.D., of George Mason University's Center for Regional Analysis, the report covers the economic contribution of apartment construction, operations and resident spending on a national level plus 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:               

  • Nationally, the apartment industry and its residents contributed $1.1 trillion to the economy in 2011, or more than $3 billion every day. This combined spending supported 25.4 million total jobs.
  • Within the New York City metro area, the apartment industry spent $1.1 billion on new apartment construction, creating a total economic contribution of $2.1 billion supporting 16,000 local jobs.
  • The apartment industry spent $9.4 billion operating the metro's 2.2 million apartment homes, generating a total economic contribution of $17.6 billion supporting 135,000 local jobs – more than eight times the impact of apartment construction.
  • Within New York State, apartment construction contributed $1.8 billion to the state economy supporting 12,000 jobs in 2011.
  • Operating the state's 2.2 million apartment homes created a total economic impact of $15.1 billion to New York State supporting 192,000 jobs.
  • New York State's 4.4 million apartment residents spent $53.6 billion on goods and services within the state in 2011, creating a total economic impact of $112.5 billion supporting 2.9 million jobs.
  • Neighboring state New Jersey received a $37.5 billion economic contribution supporting 881,000 total jobs from the combined apartment construction, operations and resident spending.

"This report emphasizes the significant positive impact of new housing construction, which contributes more than $129 billion to the state's economy," said Steven Spinola, Real Estate Board of New York (REBNY) president. "Similar to this research, REBNY has compiled data showing the biggest increase in new housing permits since the financial crisis of 2008, which demonstrates that construction of much-needed new residential housing will be on the rise as our city continues its economic recovery. In addition, studies like this remind us that building new housing doesn't just provide homes, but creates thousands of good paying, local jobs that stay right here in New York City."

"Although attention is usually focused on homebuilding and the single-family sector, the annual construction and operating outlays for apartment buildings with five or more units are major sources of economic activity, jobs and personal earnings," said Fuller. "In addition, the residents of apartment buildings constitute an important source of local, state and national economic activity as their spending for goods and services is recycled through the economy. Like the operating outlays for apartment buildings, the spending by renters recurs annually thereby supporting local economies on an ongoing basis."

In conjunction with the study's release, the new website www.WeAreApartments.org breaks down the data by each state and the 12 metro areas through an interactive map. Visitors can also use ACE, the Apartment Community Estimator, a new tool that allows users to enter the number of apartment homes of an existing or proposed community to determine the potential economic impact within New York or any of the 50 states.

"For the first time we're able to quantify the tremendous economic impact of apartment residents across the country, in addition to the powerful contributions from apartment construction and operations," said NAA Chairman of the Board Alexandra Jackiw, CPM, CAPS. "It truly shows a comprehensive view of the industry's critical role not just in housing, but to the economy at large."

"Even in one of the worst economic climates we've ever seen, the multifamily industry and its 35 million residents contributed more than $1 trillion to the economy," said NMHC Chairman Thomas S. Bozzuto, CEO, The Bozzuto Group. "With up to seven million new renter households forming this decade—almost half of all new households—the dollars and jobs we add to the economy will only grow in magnitude."

For more information or to download the report "The Trillion Dollar Apartment Industry", visit www.WeAreApartments.org.

New York City-specific information can be found at www.WeAreApartments.org/New-York-City.
New York State-specific information can be found at www.WeAreApartments.org/New-York.
New Jersey-specific information can be found at www.WeAreApartments.org/New-Jersey.

Metro Area Defined:

New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. Includes Bronx County, Kings County, Nassau County, New York County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County and Westchester County in New York; as well as Bergen County, Essex County, Hudson County, Hunterdon County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Somerset County, Sussex County and Union County in New Jersey; and Pike County in Pennsylvania.

Metro Area Defined:

New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. Includes Bronx County, Kings County, Nassau County, New York County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County and Westchester County in New York; as well as Bergen County, Essex County, Hudson County, Hunterdon County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Somerset County, Sussex County and Union County in New Jersey; and Pike County in Pennsylvania.

About Us:

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. One-third of Americans rent their housing and 35 million people live in an apartment home. For more information, contact:

NMHC at (202) 974-2300 or info@nmhc.org or www.nmhc.org

NAA at (703) 797-0616 or carole@naahq.org or www.naahq.org/governmentaffairs.

SOURCE National Multi Housing Council



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