REITs supported an estimated 3.5 million fulltime equivalent (FTE) jobs in the U.S. in 2023, producing $278 billion in labor income, according to EY’s latest Economic Contribution of REITs report, commissioned by Nareit.
The chart above shows the increasing contribution from REITs to the American economy over the past five years as measured in FTE jobs. From 2016 to 2023, the jobs equivalent contribution from REITs has risen by 1.5 million FTEs. This growth reflects both increased direct employment and investment and indirect and induced economic activity.
The overall REIT economic contribution is comprised of: 1.3 million FTEs supported by REIT operations; 431,000 FTEs supported by dividends and interest payments; and 1.8 million FTEs supported by REIT capital expenditures and induced construction activities (including the employees doing the construction, materials and supplies, and the induced activity from that expenditure and employment). REITs support new construction through both their own development activity and purchases of newly constructed structures. REITs directly employed an estimated 331,000 FTEs in 2023.
REITs’ domestic economic contribution as measured by FTEs increased by 3.2% in 2023 compared to 2022.