Utah apartments and their residents contribute $17.1 billion to the state economy annually, supporting 95,000 jobs, according to the new Hoyt Advisory Council study.
Apartment demand is growing and the industry needs to keep up. However, producing enough new apartments to meet demand requires new development approaches, more incentives and fewer restrictions.
More Utah apartments needed
Utah needs to build 3,000 new apartment homes each year to meet demand. Apartment construction contributes $1.3billion to Utah’s economy annually, creating 7,000 jobs.
Overall, apartments contribute $3.4 trillion to the U.S. economy and support 17.5 million jobs, according to the report.
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, fueled by increased rental demand overall as population and employment growth continue and renting becomes a preferred tenure choice for millions of Americans,” Eileen Marrinan, Managing Director of Eigen 10 Advisors, which partnered with Hoyt, said in a release.
“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,” NMHC President Douglas M. Bibby said in the release
“The multifamily industry is an economic engine powering the economy very significantly at the national, state and local levels,” NAA President Robert Pinnegar said in the release. “This clearly illustrates the tremendous positive impact our apartments have on the communities they serve.”
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.