NAHB Says Apartments and Condos Can Bring Jobs, Economic Benefits
July 17, 2009
Take a look at just about any big city and you'll likely find a
skyline peppered with a few condominium towers and apartment buildings-projects
that typically feature lots of glass. Now, a new report from the
National Association of Home Builders (NAHB) details the positive
impact of building new multifamily communities-which could help
spur more jobs for those in the glass industry. The NAHB used a
proprietary modeling method to generate
the report and found that the development of apartment and condo
communities generates significant economic benefits for municipalities
long after the building process has been completed.
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
According to NAHB, 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.
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 and 49 people jobs.
While residential developments could mean growth opportunities for
cities, as well as business for glass companies, some industry experts
are not expecting to see those increases in the very near future.
"As NAHB has concluded, it stands to reason that residential
development can have positive economic benefits in communities.
And since the development of investment and public structures such
as stores, offices, schools, police stations and alike are often
closely aligned with residential development, any increase in that
segment will have a positive impact to the commercial glazing industry,"
says Oliver Stepe, senior vice president with YKK AP. "In the
near term however, the fundamentals supporting any significant increase
in residential development are not apparent."
Stepe adds, "In the expanding era of social responsibility
toward sustainability and energy efficiency, the best thing companies
can do today is offer goods and services that will support a strategic
energy policy for our country. Bringing innovative goods and services
to the market will allow architects and developers to meet increasingly
stringent energy codes without obstruction. This is a good start
and may speed up building development when more positive economic
fundamentals return. It is also important that the glazing industry
police itself and not allow itself to get lost in the sea of green
marketing. True innovation will need to separate itself from the
HERE to read the full report.
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