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How REITs drive US economic growth, job creation

US-headquartered, public-listed equity real estate investment trust portfolios included nearly 570,000 properties at year-end 2024.


In brief
  • Real estate investment trusts (REITs) are pivotal to the US economy, generating over 3.6 million jobs and substantial labor income annually.
  • With a staggering $4.5 trillion in assets, REITs are reshaping communities and driving growth across diverse sectors of the economy.
  • The ripple effect of REITs extends beyond real estate, fueling consumer spending and supporting countless jobs in interconnected industries.

With a total of 3.6 million US jobs that generate $283.3 billion of labor income, real estate investment trusts (REITs) are a vital part of their communities and the US economy at large.

Ernst & Young LLP was commissioned by the National Association of Real Estate Investment Trusts (Nareit) to estimate the current economic contribution of REITs in the US.

The total economic contribution of REITs consists of the direct operations of REITs and related businesses in the US, as well as the induced and indirect flows from dividend and interest payments by REITs and REIT property improvement and construction investments.

Total economic contribution of REITs in the US, 2024

Billions of dollars, thousands of full-time equivalent employees

Direct

Indirect and induced

Total

Operations

Labor income

$30.4

$79.9

$110.3

Employment

312

936

1,248

Dividend and interest payments

Labor income

$0.0

$31.0

$31.0

Employment

0

421

421

Construction

Labor income

$72.3

$69.8

$142.0

Employment

1,023

896

1,919

Total

Labor income

$102.7

$180.7

$283.3

Employment

1,335

2,253

3,588

Note: Includes public listed, public non-listed and private REITs. Operations exclude the economic contribution of REIT dividend distributions and REIT interest payments. The table above does not include the economic contribution of the tenants of REIT-owned properties. Figures are rounded

Source: EY analysis

Employment

The total economic contribution of US REITs and related businesses in 2024 was an estimated 3.6 million full-time equivalent (FTE) jobs.

Labor income

REIT operations, dividend distributions and interest payments to investors, and construction activities contributed $283.4 billion in labor income to the US economy.

Growth

REITs in the US own $4.5 trillion of gross real estate assets. Publicly listed REITs have seen their combined equity market capitalization grow from the end of 1990 at an approximately 16.2% compound annual rate, from $9.0 billion to $1.42 trillion at the end of 2024. Figures are not adjusted for inflation.

Properties

US-headquartered, public-listed equity REIT portfolios included nearly 570,000 properties at year-end 2024, including:

  • More than 2,000 office buildings.
  • More than 200 regional malls, nearly 2,700 shopping centers, more than 1,700 restaurant locations and more than 30,000 other retail properties.
  • More than 9,000 industrial facilities.
  • Over 3,000 multifamily rental properties, with over 789,000 units.
  • Nearly 1,600 hotels.
  • Approximately 8,500 medical facilities comprising nearly 2,800 medical office buildings, more than 1,800 assisted living facilities, over 1,700 skilled nursing facilities and over 2,100 other healthcare facilities.
  • Over 7,800 self-storage facilities.
  • More than 350 data centers.
  • Nearly 100,000 telecommunications towers.
  • Nearly 200,000 single-family home rental properties.
  • More than 207,000 billboards and outdoor advertising units.
  • Close to 15 million acres of timberland.

Summary 

REITs and related companies provide employment and earnings for hundreds of thousands of employees and support jobs in other sectors of the economy that support REIT operations. Dividend distributions and interest payments by REITs to shareholders and bondholders contribute to consumer spending in the United States. Capital investments undertaken by REITs or related to new buildings purchased by REITs also support hundreds of thousands of jobs in the US economy.

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