Pennsylvania received $28.6 billion economic contribution from the combined construction, operation and resident spending, says new report "The Trillion Dollar Apartment Industry"
Feb. 12, 2013
/PRNewswire-USNewswire/ -- Despite the worst economy in a generation, apartment construction and operations contributed
metro Philadelphia economy
in 2011 supporting 28,000 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
supporting 664,000 jobs. The report, along with an interactive map and economic impact calculator, is available on the new website
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:
New York City
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 Philadelphia metro area, the apartment industry spent $152 million on new apartment construction, creating a total economic contribution of $331 million supporting 2,400 local jobs.
- The apartment industry spent $1.5 billion operating the metro's 341,000 apartment units, generating a total economic contribution of $3.2 billion supporting 26,000 local jobs -- more than nine times the impact of apartment construction.
- Within Pennsylvania, apartment construction contributed $438 million to the state economy supporting 3,200 jobs in 2011.
- Operating the state's 584,000 apartment homes created a total economic impact of $5.1 billion to Pennsylvania supporting 66,900 jobs.
- Pennsylvania's 874,000 apartment residents spent $11.0 billion on goods and services within the state in 2011, creating a total economic impact of $23.1 billion supporting 594,000 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.
"The apartment industry doesn't just provide homes. It creates thousands of good paying, local jobs that stay right here in the Philadelphia area," said
, President of The Westover Companies and 2013 President of The Apartment Association of
. "Fuller's impressive report shows just how important apartments and our residents are to Pennsylvania -- contributing more than
"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."