The New York Building Congress (NYBC) estimates that government work is going to play a major role in the growth of the New York City’s construction market.
Based on NYBC calculations, projects that began last year will ultimately total almost $38 billion in value, an increase of roughly $6 billion from 2016.
Almost $19 billion came from public works—roads, bridges, train stations and sewers—and institutional projects, meaning hospitals, schools and airports. The beginning of Gov. Andrew Cuomo’s public-private overhaul of LaGuardia Airport accounted for around $8 billion of that, according to the report.
In contrast to the abundance of publicly funded work, the report logs declines in key areas of private-sector construction. The total value of apartment buildings started last year came to $10.5 billion, down a modest $300 million (or 2.7%) from 2016—but a whopping $8.2 billion off 2015’s figure. This appears to reflect a softening of the luxury housing market.
Similarly, the value of commercial buildings that began work in 2017 came to $7.8 billion, down from almost $12 billion in 2016.
