A new report released by the New York Building Congress (NYBC) shows that construction spending in New York City is expected to reach $61.5 billion by the end of 2018. This represents a 25 percent increase from 2017, when construction spending reached $49.3 billion.
According to the report, an estimated 66.7 million and 59.8 million gross square feet will be constructed in 2019 and 2020, respectively, both well exceeding the previous decade average of 41.7 million gross square feet.
New York City construction employment is poised to increase for the seventh consecutive year and surpass 150,000 jobs for the second year in a row. After topping 150,000 jobs for the first time in 2017, the NYBC anticipates construction employment to increase by 6,800 to just under 158,000 jobs throughout the five boroughs in 2018. The NYBC forecasts employment to dip in 2019 – to 145,600 jobs – before levelling out to 147,700 jobs in 2020, which is seven percent more jobs than the average for the last five years.
Non-residential construction spending, which includes office space, institutional development, government buildings, sports/entertainment venues, and hotels, is expected to reach $39 billion in 2018, up from $23.5 billion a year ago.
The NYBC forecasts construction spending in the non-residential sector to drop to $30.4 billion in 2019 and $23.4 billion in 2020.
Non-residential construction is forecasted to add an additional 39 million gross square feet in 2018 – a record high – followed by 30.4 million gross square feet in 2019 and 23.4 million gross square feet in 2020.
NYBC anticipates $14 billion in residential construction spending this year, up from $13.2 billion in 2017. Residential spending, which includes spending on new construction, as well as alterations and renovations to existing buildings, is projected to reach $15 billion in 2019 and $10.6 billion in 2020.
Government spending on public works, which includes investments in mass transit, roads, bridges, and other essential infrastructure, is expected to reach $19.5 billion in 2018, a 32% increase from 2017 when spending reached $14.8 billion. Spending in this sector is anticipated to increase further to $23 billion in 2019 and $24 billion in 2020.
Read the report here.