APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION /
NATIONAL MULTIFAMILY HOUSING COUNCIL
Apartment Industry & Its Residents Contribute
$3.4 Trillion to the National Economy
W
ASHINGTON, 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:
• All four sectors of the industry have
posted very strong growth, punctuated
by the construction industry ramping up
to meet the unprecedented demand for
apartments this cycle – reaching a height
of 346,900 completions in 2017, up from
129,900 in 2011.
• Previous research by Hoyt Advisory
Services found that we need to build
an average of 328,000 apartments per
year at a variety of price points to meet
existing demand, which would bring
continued economic activity. This number
of multifamily completions has only been
surpassed twice since 1989.
• Hoyt research also found that
a significant portion of the existing
apartment stock will need to be renovated in
the coming years, boosting spending in the
renovation and repair sector.
• The combined contribution of
apartment construction, operations,
renovation, and resident spending equals
$3.4 trillion per year, or more than $9.3
billion daily.
“The apartment industry’s contribution
is one that has grown in recent years,
www.aamdhq.org
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.
Visit www.WeAreApartments.org and
view the data, which is broken down by state
and metro area. Visitors can also use the
Apartment Community Estimator (ACE), a
tool that allows users to enter the number of
apartment homes of an existing or proposed
community to determine the potential
economic impact within a particular state or
metro area.
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.org.
OCTOBER 2019
TRENDS | 33