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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."

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