The multifamily market has contributed $63.1 billion annually to the local Los Angeles economy, according to a recent National Apartment Association survey analyzing data from 2013. The survey shows that apartment industry, including construction, operations and resident spending, has generated billions of dollars as well as 534,900 jobs. This is more than any other metropolitan area in the US.
AAGLA did a survey last year that showed results, but this is probably surprising for some people who don’t understand how important the multifamily communities are to metropolitan areas as a whole.
Apartment construction generated $5 billion alone, while apartment operations contributed $11 billion. Renter spending from these apartment complexes generated the most for the local economy, a total of $47.1 billion. The report looked at 40 individual markets as well as the national markets. The apartment community generated $139.1 billion and supported 1.3 million jobs for the California state economy.
Although this is good news, it is important to remember that demand for apartments is still high and vacancy rates are at all-time lows, meaning there is still more to do. We are in a housing crisis and there is really no place to go but up. This number is going to grow more and more, especially as the economy turns around. Downtown Los Angeles has the most multifamily development in the market, and that they are still catching up to the growing demand.
From a national perspective, the apartment industry has generated $1.3 trillion for the global economy, and 12.3 million jobs. These numbers, as well as the boom in the local L.A. economy, show that the multifamily sector was the strongest commercial real estate class out of the recession.