Apartments, Condos Benefit Local Economies
A new report from NAHB found that the development of apartment and condo communities generates significant economic benefits for municipalities long after the building process has been completed.
"As employment and tax revenues plummet nationwide and local governments continue to seek ways to enhance the fiscal health of their communities, this new report should enhance local planning efforts," said NAHB Chairman Joe Robson.
The report explains how a typical development of either 100 rental apartments or 100 condominiums affects income and employment figures for 16 sample industries and local government, as well as detailed information about the new construction's effect on taxes and government revenue.
During its first year of construction, a typical 100-unit apartment community will generate $7.9 million in local business owners' income, wages and salaries; $827,000 in taxes and other revenue; and 122 jobs.
The Club at Clove Lakes Park is an example of a active-adult, over 55 condominium community here on Staten Island
A similarly-sized condominium community would do even more, with $20.9 million in owners' income and local wages and salaries, $2.2 million in public revenue and 319 jobs.
"To fully understand the positive impact of multifamily construction, it's important to recognize the economic ripple effects and ongoing benefits to the community at large," Robson said. "Local governments now have a great resource they can use to enhance their land use policies."
And both apartments and condos continue to deliver benefits to the local area for years to come. Each year, the construction of 100 multifamily units could generate $2.3 million to $2.9 million in business income; $395,000 to $705,000 in taxes and other revenue; and 32 to 49 jobs.
"There is continued demand for close-in housing in major metro areas, and apartments and condos not only can fill that need, but also can help jump-start local economies," said NAHB Chief Economist David Crowe. "The initial impact and the ongoing ripple effect from added employment and tax revenue can make encouraging multifamily development a winning strategy for local governments."
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