TRENTON-The New Jersey multi-family housing industry annually shells out $1 billion in property taxes and another $140 million in state taxes, according to a study commissioned by the New Jersey Apartment Association.
It also:
- supports more than 44,000 jobs, and
- contributes $5.7 billion to the state Gross Domestic Product.
This week the NJAA sent Gov. Christopher J. Christie a copy of a comprehensive report it had commissioned, done over two years by Rutgers University’s Edward J. Bloustein School of Planning and Public Policy, that documents the industry’s muscular role in the state economy.
So what does the powerful industry want from Christie and the legislators? In a word: recognition. Nicholas Kikis of NJAA tells GlobeSt.com the sole intent of having the study done was to beef up the public profile of the apartment-owning-and-managing business in the state.
“We are not in pursuit of specific governmental policies,” says Kikis, who is the policy and research director for the organization. Kikis says the goal is simply to have lawmakers and regulators clearly understand that the multi-family industry is, in fact, an industry.
More tax breaks? Less rent control? Kikis, and Jean Maddalon, the NJAA executive director, who issued a statement about the new study, declined to stop at that floor on the elevator.
“The intent of the report is to show how impressive and significant this industry is,” Kikis responds. “Going forward, policy-makers need to understand the various complexities of property ownership and management.” Likewise, Jean Maddalon, the NJAA executive director of the apartment group – which has 7,916 members – said the study underscores the need to “ensure the vitality of this sector for our state’s economic success.”
Will Irving, a research associate at the Bloustein School, talked about jobs, all important in a state that continues to struggle with an unemployment rate above the national average: “In addition to the significant direct employment supported by the industry, the multiplier effects of its expenditures generate additional jobs and economic activity throughout the state economy.”
The report says that operating expenditures and investments made each year on multifamily properties generate 44,444 jobs in New Jersey. The industry directly employed almost 22,000 property managers, maintenance personnel, leasing professionals, administrators and other staff, it says. Another 22,000 jobs are indirectly supported.
Overall, the apartment industry spends approximately $4.2 billion annually on operations and an additional $410.6 million on renovations to existing structures, according to the research. Thus, $5.7 billion total is added to the gross domestic product (GDP) each year.
About three million people live in apartments in New Jersey – about one-third of the state population – the report notes. The NJAA, a nonprofit group founded in 1986, represents apartment owners, managers, builders, developers and those involved in allied industries.
The association represents managers and owners of more than 160,000 rental units.
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