In communities across the country, apartments work – helping people live in a home that’s right for them. Learn how apartments and their residents contribute more than $1 trillion to the economy.
Economic impact data (spending, economic contribution, and jobs created) were estimated by Dr. Fuller for 2013:
- Total apartment stock/units: American Community Survey for 2012;
- Mean apartment renter incomes: American Community Survey for 2013;
- Apartment operations spending: National Apartment Association, 2013 Survey of Income and Expenses;
- Value of apartment construction: U.S. Census Bureau, 2013 Building Permits Survey; and the U.S. Census Bureau's 2013 Value of Construction Put in Place;
- Apartment resident spending: Bureau of Labor Statistics, 2013 Consumer Expenditure Survey;
- Multipliers from the U.S. Bureau of Economic Analysis.
Descriptive demographic and housing data (such as the number of apartment residents and the size of the apartment stock) are updated using the most recent data from the American Community Survey.
Metropolitan market area summaries were created using information from MPF Research.
Methodology for Data that was Provided by NMHC and NAA to Dr. Fuller
Dollars Spent on Multifamily Construction. The annual value for new private multi-family construction put in place from the Census Bureau is used as the source for 2013 U.S. construction spending numbers. These data are only available at the national level, however.
The Census Bureau’s Building Permit Survey provides valuation data for metropolitan areas, states, and the United States as a whole. The percentage of the total U.S. valuation in each of the metropolitan areas is calculated; the same is done for all of the states and the District of Columbia. That same percentage is then applied to the total U.S. spending number from the Value of Construction Put in Place Survey, resulting in an estimate of spending for each of the states and metropolitan areas.
Total Number of Existing Units (5+ units in building). The 2012 American Community Survey (ACS) microdata include occupied multifamily rental units, as well as vacant units, for the United States and all 50 states. For national and state data, the “rented” and “occupied without the payment of rent” is included from the “tenure” variable in the microdata, as well as the “for rent” and “rented, not occupied” categories from the “vacancy status” variable in the microdata.
These data are not available for all of the metropolitan areas, and only total multifamily units, occupied multifamily rental households, and occupied multifamily owned households are available from the 2012 ACS 1-Year Estimates. To estimate the total rental stock, the overall rental vacancy rate for each specific metropolitan area was applied to the occupied apartment stock number available from the American Community Survey. As with the national and state data, “for rent” and “rented, not occupied” are included in the rental vacancy percentage. Because “rented, not yet occupied” is counted in the occupied total, the ratio of occupied apartments to occupied rental units was calculated, and then applied to the total number of “rented, not yet occupied” units for the metropolitan area, in order to calculate the number of “rented, not yet occupied” apartments.
Dollars Spent on Multifamily Operations. NAA’s Survey of Operating Income and Expenses in Rental Apartment Communities provides the average spending for several line items, such as “Maintenance and Repairs”, “Utilities”, “Building Management”, and “Building Services”. Several line items were calculated to use the average amount of spending per apartment unit. These amounts are available for the United States, all 50 states and Washington, DC, and the 40 metropolitan areas.
Total Number of Apartment Households (5+ units in building). The total number of renter-occupied multifamily (5+) households are available from the 2012 American Community Survey (ACS) 1-Year Estimates for all the geographies.
Dollars Spent by Apartment Residents. The Bureau of Labor Statistics’ 2013 Consumer Expenditure Survey (CES) breaks down spending by tenure. Dr. Fuller determined which categories were relevant for the state and metro-level spending, and applied that percentage (36.6 percent) to the mean household income for each geography to calculate the impact of local spending. For the United States, 51.2 percent of the national mean apartment household income was used to calculate the impact of spending by apartment households on the U.S. economy.
The mean apartment renter household income for each state and the U.S. is available from the 2013 American Community Survey public use microdata. The mean apartment renter household income microdata for the metropolitan areas were not available directly from the U.S. Census, but were obtained from the University of Minnesota’s IPUMS program. Data were not available for the Sioux Falls metropolitan area from IPUMs either. In this case, the ratio of the mean household income for the Sioux Falls metropolitan area to the mean household income for the state of South Dakota was calculated, and was then applied to the mean apartment renter household income for the state of South Dakota.