The apartment industry is a robust $1.3 trillion industry that helps today’s 39 million apartment renters live in a home that’s right for them. We offer housing choice, support local small businesses, create millions of jobs and contribute to the fabric of communities across the country. And we are increasingly important given the historic growth in renter households in recent years. That’s good news. Meeting that demand will create millions of jobs. To get there, we need new public policies that support the multifamily housing industry and that don’t make it harder for renters and their families to find the housing that makes sense for them and their community.
Booming Rental Demand
- Over one-third of American households rent their housing and 44 percent of those live in apartments.
- There are over 75 million people between 18-34 years old entering the housing market, primarily as renters.
- Nearly 93 million Americans aged 55 or older have the option of downsizing as their children leave the house, and many will choose the convenience of renting. Over half (59 percent) of the net increase in renter households from 2007 to 2017 came from householders 55 years or older.
- Demographics are changing our housing preferences. Married couples with children are now only 20 percent of households, greatly reducing demand for traditional single-family houses.
Demand Outstrips New Supply
- The U.S. needs to build at least 4.6 million new apartment units by 2030 to accommodate house- hold growth and losses to the existing stock.
- We've only hit that mark once since 1989. 2017 was the first year that the number of apartment units delivered–347,700–exceeded the 328,000 needed to meet expected demand.
Growing the Economy and Creating Jobs
- In 2013, the nation’s 19.5 million apartment homes and the residents who lived in them contributed $1.3 trillion annually to the economy. They sup- ported 12.3 million jobs.
- That means apartments and the people who live in them contributed, on average, $3.6 billion a day to the economy.
- In 2013, new apartment construction produced $30 billion in spending, supported 702,482 jobs and had a total economic contribution of $92.6 billion.
- The same year, operating the nation’s existing apartments accounted for 1.5 million jobs and a to- tal economic contribution of $190.7 billion.
- Total apartment resident spending in 2013 totaled $406.0 billion, supporting 10.1 million jobs and a to- tal economic contribution of $1.0 trillion.
- The collective economic impact of apartments and their residents continues to grow as construction begins catching up to demand.
A Strong Track Record
- The performance of the apartment industry stands in stark contrast to the single-family sector. The apartment industry did not overbuild and did not contribute to the housing meltdown.
- Importantly, delinquency rates for the GSEs’ multi- family loans remain near or below 0.1 percent.
Find out how apartments are contributing to your state or metro area economy at www.WeAreApartments.org, where you can also use ACE—the Apartment Community Estimator—to see the economic impact of a given number of apartments in your state.