Growing consumer demand, shifts in public policy and an aging apartment stock should cause the pace of rental apartment upgrades to increase over the next decade.  This research fills a critical gap in information about the $5 billion spent each year on apartment upgrading by providing valuable estimates for each state and the 25 largest metro areas of the number of apartments upgraded each year, the types of jobs and the amount spent on improvements.

NMHC's analysis indicates that one out of every three apartments is upgraded each year, and 70 percent are improved over a 10-year period. Between 2000 and 2010, an estimated five million apartments are likely to be upgraded annually. Half of these upgrades, whether measured by the number of apartments improved or the aggregate spending on those improvements, will occur in just six states: California, New York, Texas, Florida, Illinois and Ohio. Kitchen and bathroom renovations are the most common upgrades, followed by heating and then plumbing improvements.