New York Construction Report staff writer
The construction industry in the Middle Atlantic region is poised for a 1.7% increase in spending in 2026, reaching nearly $197 billion, according to FMI’s latest industry outlook.
Following a stabilizing year in 2025, the region is expected to see growth across residential, nonresidential, and nonbuilding sectors.
Key Drivers in the Region
- Megaprojects: Large-scale projects continue to influence regional timelines. The report cites Micron’s massive semiconductor facility in New York, where the timeline for the first fab construction has shifted to mid-2026, extending completion targets to 2030.
- Residential & Conversions: Multifamily residential spending is forecast to tick up 2% in 2026 after a correction in 2024-2025. New York City is identified as the “2026 focal point” for office-to-residential conversions, supported by local programs like the Office Conversion Accelerator which helps de-risk feasibility work for developers.
- Infrastructure: Power and highway spending are projected to grow 5% and remain flat respectively in 2026, contributing to a 2% overall increase in nonbuilding structure investment.
FMI notes that leasing competition for multifamily units remains intense in high-demand cities like New York as return-to-office initiatives continue.
