To the extent that pension participation in real estate markets features a developmental component, similar economic effects are feasible. This has been illustrated in empirical assessments of American real estate investment deals over a fifteen-year period and made by a pension-supplied developer located in California. Between 1981-1996, over $4 billion in spending on residential and non-residential construction was estimated to create over $10 billion in productive activity. This included total working time of approximately 230 million person-hours, of which construction workers captured almost 90 million. These data were produced using the econometric model of the Construction Industry Research Board in the United States and are said to be typical.^{Endnote 114}

Another essential economic and social outcome of such investment activity is improvements to the quantity or quality of housing stock and to business and public sector infrastructure. The California developer's financing, cited above, was channelled to new single family dwellings and new buildings for commercial tenants. Another by-product may be increased contribution levels to the pension suppliers of capital if employment generated includes working plan members. Naturally, this is one rationale for pension asset syndications for real estate investing promoted by jointly-trusted and union-directed funds representing construction and supplier industries (see references to Greystone Properties, Mortgage Fund One and Their American Cousins for examples).

In recent years, cutbacks to expenditure programs sponsored by Canadian governments have raised concerns about the availability of affordable, quality housing in for-profit, non-profit and co-operative sectors, in communities and regions throughout the country. One trend flagged to be of especially great concern has been little new provision of moderately-priced rental apartment units, or renovation of aging ones, in the current decade. In addition, local and provincial governments give some priority to new construction or alteration of commercial, industrial and retail properties. Investment in these may help attract new business or help retain existing enterprises and thereby contribute to a region's economic base.

While pension asset allocations to real estate in aggregate have been declining (see below), there have been tentative signs of renewed interest. Moreover, fresh investment initiatives directed at perceived gaps in development (e.g., affordable housing) appear to be gaining ground in both Canada and the United States. Impetus behind these comes primarily from construction industry pension funds, alluded to above, and, more recently, public sector funds, sometimes accompanied by the fiscal leverage or stimulus of government.

Infometrica's Michael McCracken and Carl Sonnen have also provided analysis of the large economic and job multipliers associated with investing in the development of transportation, communications and environmental infrastructure, both private and public.^{Endnote 115} An overview of this topic, and its connection to Canadian pension funds, is given in Infrastructure: The Newest Asset Class?.