By Keith Loria, Contributing Writer
Trenton, N.J.—In a new study, the New Jersey Apartment Association and the Edward J. Bloustein School of Planning and Public Policy at Rutgers revealed that the economic contribution of the multifamily industry, which comprises over 500,000 rental units in five+ unit buildings, is a significant component of the New Jersey economy.
The study showed that the apartment business directly or indirectly supports approximately 44,000 jobs in New Jersey, contributing more than $5.7 billion to the State Gross Domestic Product and generating more than $1 billion in local tax revenues.
“In terms of impacts of the industry as a whole, one thing we were able to do was get detailed information on what their annual expenditure profiles looked like,” Will Irving, research associate at the Bloustein School, tells MHN. “Based on 2010 expenditure data, the industry spends $4.2 billion on its annual ongoing operations and spends an additional $410.6 million on capital expenditures on renovations to existing structures.”
The NJAA commissioned the Bloustein School to perform this comprehensive economic analysis of the apartment industry to better explore effective long-range housing policy planning.
“It should come as no surprise to learn that rental housing is an essential source of housing for our state and that the industry that provides this housing is a multi-billion dollar industry,” Jean Maddalon, NJAA’s executive director, says. “The findings of this study, quantifying job creation and the economic impact at the state and local levels, underscore the need for legislative leaders to continue to ensure the vitality of this sector for our state’s economic success.”
The report reveals that the multi-family industry directly employed nearly 22,000 property managers, maintenance personnel, leasing professionals, administrators and other staff and was responsible for an additional 22,000 jobs in other business sectors as a result of its expenditures.
“Examining its significant annual operating and capital expenditures, the multi-family industry is a major contributor to the state’s employment, income and output,” Irving says. “In addition to the significant direct employment supported by the industry, the multiplier effects of its expenditures generate additional jobs and economic activity throughout the state economy.”
With over three million New Jersey residents living in multifamily housing, Irving says the economic impact of the multifamily housing industry in the Garden State goes well beyond that of its employees.
The NJAA is using the analysis from the study to reach out to government leaders and officials to better serve the multi-family housing industry in the future.