New Jersey's Multi-family Housing Industry Economic Profile
A comprehensive study by the Edward J. Bloustein School of Planning and Public Policy at Rutgers, The State University of New Jersey, and commissioned by the New Jersey Apartment Association (NJAA), analyzes the economic contribution of the multi-family apartment industry to the New Jersey economy and concludes that the apartment industry – comprising over 500,000 rental units in 5+ unit buildings – is a significant component of the New Jersey economy.
The study estimates that in 2010, the industry directly or indirectly supported over 44,000 jobs (1.2% of the state’s total employment), contributed $5.7 billion to the State Gross Domestic Product (GDP), generated over $1 billion in local tax revenues, and $140 million in tax revenue to the State of New Jersey.
The NJAA commissioned the Bloustein School to perform a comprehensive economic analysis of the apartment industry in order to provide officials and the industry with the insights required for future effective long-range housing policy planning.
Additional key highlights from the Rutgers report for the industry’s impact in 2010 include:
- Operating expenditures and investments made each year on multifamily properties were responsible (directly and indirectly) for 44,444 jobs in New Jersey.
- The 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.
- In 2010 the apartment industry contributed :
- $1.0 billion in local tax revenue;
- $140 million in annual state tax revenue.
- Overall, the apartment industry spends approximately $4.2 billion on its annual ongoing operations and an additional $410.6 million on capital expenditures on renovations to existing structures (not including new construction activity). These direct expenditures and their subsequent impacts add $5.7 billion to the gross domestic product (GDP) for the state.