Apartment Construction Contributes $2.5B Annually to Denver Economy
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.
“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,” said Eileen Marrinan, managing director of Eigen 10 Advisors, which partnered with Hoyt.
According to the report, Denver needs to build 4,000 new apartment homes each year to meet demand. Apartment construction contributes $2.5 billion to Denver’s economy annually, creating 10,000 jobs.
- The operation of Denver’s apartment homes contributes $1.6B to the local economy each year (including $371.7M in property taxes), creating 3K jobs.
- Spending from Denver’s apartment residents contributes $34.2B to the local economy each year (including $4.4B in taxes), creating 170,000 jobs.
- The renovation and repair of apartments helps preserve Denver’s older more affordable units, contributing $717M to the local economy annually and creating 3,000 jobs.
“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.