Photo: Robert Clark
Despite an annual dip in spending this year, NYC remains in the midst of its second building boom of this century.
And, the latest boom shows no sign of relenting anytime in the near future, according to a recent report by the New York Building Congress (NYBC).
The NYBC estimates that $45.3 billion will be spent on construction in NYC this year, down 13 percent from $52.2 billion spent last year. However, this year’s total would still be the second highest in actual dollars in city history, second only to 2016, says the NYBC.
“The year-over-year decline is a function of 2016 being one of the most productive years for construction in New York City history,” Building Congress President and CEO Carlo A. Scissura tells BuzzBuzzNews.
And the downtick isn’t expect to last. The NYBC forecasts building spending to reach $52.5 billion in 2018 and $50.1 billion in 2019.
“New York City’s construction industry continues to fire on all cylinders,” says Scissura.
Following a record-setting year in spending and employment in 2016, the three-year forecast looks to remain white hot, adds Scissura.
Meantime, residential spending is expected to reach $11 billion this year, below last year’s $16 billion total — this includes both new construction and renovations to existing buildings.
The NYBC predicts residential construction spending will hit $11.6 billion in 2018 and $10.6 billion in 2019.
The number of new units delivered is expected to reach 26,700 this year, down sharply from 37,700 last year. Beyond this year, the NYBC expects some 24,000 new units will be delivered in 2018, and 22,000 new units in 2019.
“Our forecast calls for annual production to remain well above 20,000 units annually, which we believe is the magic number in terms of accommodating the housing needs of a growing population and replacing antiquated units,” Scissura tells BuzzBuzzNews.
The residential sector has been “white-hot” over the last couple of years. In fact, the years 2015 and 2016 proved to be the most productive two-year period for building in the city in over 20 years, delivering an “astounding” 72,000 new units.
And while the pace of new housing construction will cooler in the coming years, the 2018 and 2019 projections remain strong from a historical perspective.
Click here to read the entire report.