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Research Shows Multifamily Housing is a Trillion Dollar Business
Feb 20th, 2013
On February 12th, Affordable Housing Finance published an article by Jennifer Popovec that addressed a recent study on the economic impact of multifamily housing in the United States. The study, done by the National Multifamily Housing Council and the National Apartments Association, is the first to examine the gross domestic product of the multifamily housing industry. In years past, the success of a new apartment complex was determined by its bottom line; that is, net operating income, revenue and expense, debits and credits. The new study proved, however, that this is only a snapshot of what proved to be a long-term process.
According to the study, the multifamily housing industry (which includes affordable and market rate projects) contributes $1.1 trillion dollars to the national economy and supports 25.7 million jobs. The three most significant elements that impact the success of this industry are construction, operations, and resident spending. Resident spending proved to be the most impactful, contributing $885.2 billion dollars to the national economy in 2011 alone. Further, the 35 million apartment residents tend to spend their dollars locally, more so than their homeowner counterparts, which helps stimulate at the local level, from the bottom, up.
All told, the study disproved the widespread notion that multifamily communities are second-class; those who think that apartment communities are less desirable in a given community certainly don't realize the critical importance the industry has on the economy. The author describes the trillion dollar industry as a "major economic force", which is supported by the study. Click here for a link to the AHF article, and from there you can follow a link to the new study.