NYC Construction Spending Up 25% From 2017, Says NYBC
The latest construction industry report optimistically indicates continued growth but also realistically lays out areas where activity is projected to slow down.
NEW YORK CITY—Construction continues to boom with a forecast that spending will reach $61.5 billion, a new record high for the city, according to the Construction Outlook 2018-2020 report authored by the New York Building Congress and the New York Building Foundation. The report states this spending reflects a 25% increase from last year. It also notes employment gains with the workforce almost at 158,000 this year. However, construction spending is expected to dip to $59.3 billion in 2019 and $56.4 billion in 2020.
At an industry breakfast on Friday morning, Carlo A. Scissura, president and CEO of the New York Building Congress, released the report and highlighted some of its findings. In the keynote address, New York City Transit president Andy Byford called for continued investment in the city’s public transportation. A panel of transportation experts reviewed the city’s transportation challenges, underscoring the need for modernizing and supplementing existing transit.
The report states construction employment is poised to increase for the seventh year in a row. However, a decline to 145,600 jobs is expected for 2019, leveling out to 147,700 jobs in 2020. That’s about 10,000 fewer job than in the current year.
Residential construction spending hit $13.2 billion in 2017. It’s anticipated to rise to $14 billion for 2018 and continue to climb to $15 billion next year. But predictions are for this amount to fall to $10.6 billion in 2020. This includes new construction and building alterations and renovations.
Non-residential construction spending is on track to reach $39 billion in 2018, up from $23.5 billion from last year. But the Building Congress forecasts spending in this sector to drop to $30.4 billion in 2019 further declining to $23.4 billion in 2020.
The Building Congress foresees increased spending with certain public transportation. The MTA’s construction spending is headed to reach $7.2 billion this year, rising from $5.1 billion in 2017. The analysis anticipates MTA spending to increase to $7.9 billion in 2019 and to $8.5 billion in 2020. However, the report notes Byford issued a plan to upgrade and modernize the subway system, and that has a $37 billion price tag.
Finally, the report states The Port Authority of New York & New Jersey will invest $1.9 billion this year in the city’s capital projects. That’s up from $1.2 billion in 2017. The Building Congress estimates that Port Authority construction spending in the city will increase in the coming years to $2.9 billion in both 2019 and 2020.