REITs Economy Supports 3.5M Jobs and $278B in Wages

The Big Picture

In 2023, US REITs and their subsidiaries owned more than $4 trillion in real estate assets, with portfolios spanning nearly 580,000 properties. EY’s analysis for Nareit estimates that REITs economy supported supported 3.545M full-time equivalent jobs and $277.8B in labor income across the country.

These estimates reflect not just direct employment at REITs, but also supplier activity, household spending tied to REIT wages, dividend and interest distributions, and construction spending.

Operations at the Core

REITs directly employed about 331,000 workers in 2023, paying $31.1B in wages. When supplier purchases and employee spending are added, operations supported 1.333M jobs and $114.3B in labor income. Employees worked across a range of property sectors, with the largest shares in building services, data centers, and property management.

Dividends Keep Cash Moving

Because REITs are required to distribute at least 90 percent of their taxable income, dividend payments are a major part of their economic footprint. In 2023, REITs paid an estimated $110.8B in dividends and $88.1B in interest.

After excluding foreign ownership and retirement accounts, about $82.2B was available to US households for current consumption. According to EY’s estimates, this re-spending supported 431,000 jobs and $31.8B in labor income.

Construction Drives the Jobs Engine

REITs also supported large-scale construction activity in 2023, with $16.4B invested in new building development and $104.5B in capital expenditures for property maintenance. In total, $120.9B in construction spending supported 1.781M jobs and $131.8B in labor income. These estimates reflect one-year impacts tied to REIT-funded projects and upkeep.

Where the Impact Lands

REITs economy contribution was national but concentrated in a few states. California led with 562,000 jobs supported by REIT activity. Texas followed with 316,000, Virginia with 276,000, Florida with 250,000, and New York with 236,000. Altogether, REIT-supported wages drove $222.2B in consumer spending in 2023. The largest amounts were in California, Texas, Virginia, Florida, and New York.

Why It Matters

REITs were authorized by Congress in 1960 to give investors access to professionally managed portfolios of income-producing real estate. More than sixty years later, they have also become a significant source of jobs, wages, and consumer spending. The 2023 footprint shows that REITs contribute to the US economy not only through ownership and investment but also through employment, distributions, and construction activity.