GlobeSt.com: One Project's Economic Ecosystem
June 05, 2013
On Tuesday Tom Bozzuto, chairman and CEO of The Bozzuto Group and chairman of the National Multi Housing Council, testified before a House Energy and Commerce Subcommittee regarding the economic strength of the apartment industry.
Bozzuto's mission was to describe how important and entrenched the multifamily industry is in the economy. To that end, Bozzuto provided the expected statistics ("the apartment industry is a competitive and robust $1.1 trillion industry that helps 35 million renters live in a home that's right for them") and the lay of the land as it stands right now ("It takes at least 300,000 new apartments each year to meet demand, but less than half that number was delivered in 2012").
Perhaps the most compelling image Bozzuto presented in his testimony, though, was the far-reaching effects one multifamily project under development has on the local economy. He pointed to the $72 million Union Wharf in Baltmore's Fells Point submarket as an example.
The 281-unit the project is using, according to Bozzuto:
14,000 cubic yards of concrete
1,000 tons of reinforcing bar
Nearly 1.75 million linear feet of lumber
76,000 sheets of drywall
A sprinkler system that requires 56,250 linear feet of piping and almost 5,000 sprinkler heads
204,000 pounds of granite, 290,000 bricks, over 7,000 gallons of paint, 1,700 appliances and 3,500 cabinets.
"More important," Bozzuto said, "over 25 percent of the construction materials used were sourced within 500 miles of the project site. This reflects the possibilities available for multifamily firms to develop relationships with regional manufacturers and suppliers. More than $1.4 million of the project’s concrete was manufactured within 5 miles of the site, and an additional $2.3 million in related concrete materials were manufactured within 500 miles of the site. Other regionally-sourced materials included the wood framing and $700,000 worth of rebar."