Rental Boom is Boon to Charleston Economy

Study: Rental Boom is Boon to Charleston Economy, Contributing $1.4B Locally in 2013 Fueled by Demographic Changes, Growing Millennial Population, Rediscovery of Urban Cores, People are Increasingly  

Drawn to Apartment Living

WASHINGTON, D.C. - The apartment industry emerged as one of the strongest sectors coming out of the Great Recession, and a new study shows just how much the Charleston economy benefited from the rental boom. In 2013 - the latest numbers available - apartment construction, operations and resident spending contributed $1.4 billion locally and supported more than 16,400 jobs in the metro area.

The economic data is part of new research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), which looks at dollars and jobs from apartment construction, operations and resident spending, nationally, by state and in 40 specific metro areas, including Charleston. The data, based on research by economist Stephen S. Fuller, Ph.D., of George Mason University's Center for Regional Analysis, are available on the website www.WeAreApartments.org.

Nationally, the apartment industry and its 36 million residents contributed an impressive $1.3 trillion to the U.S. economy, supporting 12.3 million jobs across the U.S. in 2013.

The study showed that in the Charleston area:

• The local economic contribution from the apartment industry totaled $1.4 billion, supporting 16,400 jobs.
• The economic contribution of local apartment construction totaled $190.4 million.
• The economic contribution of local apartment operations totaled $229.1 million.
• Apartment construction and operations supported $145.5 million in personal earnings for local workers.
• Renter spending in the Charleston metro area contributed $998.7 million to the local economy.
• The total economic contribution of the apartment industry and its residents in South Carolina totaled $6.3 billion and supported 68,400 jobs.

"Charleston's supply of apartments is expanding at one of the highest rates in the country, and people are renting these apartments at a strong pace," said Charleston Apartment Association President Wendy Tucker.

"Here in Charleston, we're feeling the positive economic impact of the booming apartment industry, which is helping our area thrive," Tucker explained. "The great news about the apartment industry is that the dollars and jobs don't end with construction. The ongoing operations and resident spending make each apartment community an economic engine, supporting local jobs and making a positive economic impact in our area."

"Our study showed major increases around apartment construction, with construction spending, economic contributions and personal earnings all rising substantially," said Fuller. "The construction for multifamily apartment buildings is a significant and growing source of economic activity, jobs and personal earnings in communities nationwide."

"According to our study findings, apartment construction has been on the rise over the past five years. In 2009, during the economic recession, there were only 97,000 construction starts, which was the lowest level since records began in 1964. In comparison, there were 294,000 construction starts in 2013 - a significant increase," said NAA Chairman Tom Beaton, Senior Vice President, Management, The Dolben Co.

"The most visible sign of the rental resurgence - apartment construction - is on the rise, contributing $93 billion to the national economy in 2013, resulting in $30 billion going directly into the paychecks of more than 700,000 workers," said NMHC Chairman Daryl Carter, CEO of Avanath Capital Management. "Besides all the dollars and jobs, the increase of available apartments will also help address affordability challenges that we see in many markets across the U.S."

In conjunction with the study's release, the website www.WeAreApartments.org breaks down the data by each state and 40 key metro areas. Visitors can also use the Apartment Community Estimator - or ACE - a tool that allows users to enter the number of apartment homes of an existing or proposed community to determine the potential economic impact within a particular state or metro area. For more information, visit www.WeAreApartments.org/metro/charleston.

The Charleston Apartment Association's mission is to recognize the vastly increasing role of the apartment industry in providing quality housing. As members of the Charleston Apartment Association, we have united for the purpose of improving the services of the apartment industry, staying abreast of legislative issues, networking amongst our members, offering educational programs, participating in charitable endeavors, and featuring local and national speakers. We adhere to and practice the 'Golden Rule' in all our endeavors and conduct ourselves in a forthright and ethical manner to better the communities of which we are a part.

For more than 20 years, the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) have partnered on behalf of America's apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of multifamily rental housing. Today, more than one-third of Americans rent their housing and 37 million people live in an apartment home. For more information, please visit www.nmhc.org or www.naahq.org.