California received $190.9 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 $14.7 billion to the Los Angeles-Long Beach-Santa Ana economy supporting 107,000 local jobs in 2011, 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 $190.9 billion to California's economy supporting 4.5 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 of buildings with five units or more 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:
- The Los Angeles-Long Beach-Orange County apartment construction industry supported 18,000 local jobs, spent $1.3 billion on new local apartment construction and created a total economic local apartment construction contribution of $2.7 billion in 2011.
- The Los Angeles-Long Beach-Orange County apartment operations industry supported 88,000 local jobs, spent $5.8 billion operating the local 1.3 million apartment homes and generated a total local economic contribution of $12.0 billion – operations provides more than four times the impact of apartment construction.
- The California apartment construction industry supported 45,000 CA jobs and contributed $6.7 billion to the CA economy in 2011.
- The California apartment operations industry supported 300,000 jobs, spent $11.1 billion operating California's 2.8 million apartment homes and generated a total local economic contribution of $24.6 billion.
- California's 6.2 million apartment residents supported 4.1 million jobs, spent $76.0 billion on goods and services within CA and generated a total economic impact of $159.6 billion in CA.
- Nationally, the apartment industry and its residents supported 25.4 million total jobs and contributed $1.1 trillion to the economy in 2011 - more than $3 billion every day.
"The apartment industry provides not only homes, but also provides thousands of local jobs and hires thousands of small businesses that drive the Los Angeles-Long Beach-Orange County economy," said James B. Clarke, CEO of the Apartment Association of Greater Los Angeles. "Apartment operations hire not only property managers and related personnel, such as maintenance technicians, but also numerous suppliers including pest control, landscaping, painters, laundry, staffing companies and online marketing services, to name a few. This eye-opening report shows just how important rental units and residents are to the local, California and national economy."
Local training as well as webinars and online courses are available from the Apartment Association of Greater Los Angeles, Apartment Association California Southern Cities in Long Beach and the Apartment Association of Orange County in Santa Ana. For more information on training to work in apartments and apartment careers visit www.apartmentcareerhq.org.
"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 California 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."
"The Trillion Dollar Apartment Industry Report quantifies only buildings with more than 5 apartment homes which measures only about two-thirds of the local and state rental market, so I know the full number of jobs supported and economic impact is much higher," said James B. Clarke, CEO or the Apartment Association of Greater Los Angeles. "The Apartment operations side of the Industry is already four times the size of the construction side, but apartment operations could be six or seven times the number of jobs and economic output of construction."
For more information or to download the report "The Trillion Dollar Apartment Industry", visit www.WeAreApartments.org.
Los Angeles-Long Beach-Orange County-specific information can be found at www.WeAreApartments.org/Los-Angeles.
California-specific information can be found at www.WeAreApartments.org/California.
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:
SOURCE National Multi Housing Council