NEW YORK CITY-In a continuation of a remarkable trend ofaccelerating growth in building activity, total constructionspending in New York City by businesses, government andinstitutions is expected to reach $26.2 billion in 2007, accordingto a “New York City Construction Outlook 2007-2009″, an annualforecast and analysis prepared by the New York Building Congress.While overall construction spending reached a record $24.6 billionin 2006, the Building Congress forecasts spending of $26.2 billionin 2007, $27.5 billion in 2008, and $29 billion in 2009, for athree-year forecast of $83 billion. If realized, this wouldrepresent an 18% increase in annual spending over the three-yearperiod.

“The ongoing building activity in the five boroughs of New YorkCity is the result of an industry in which every sector isbooming,” notes Building Congress chairman Dominick Servedio, whoserves as chairman and CEO of STV Inc., in a statement. “Officeconstruction is white hot. New York's continued strength in thehousing market continues to defy the national trend. All levels ofgovernment are undertaking major, multi-year investments ininfrastructure improvements, and bedrock institutions, includinguniversities and cultural institutions, are continuing toexpand.”

The non-residential sector, which includes office construction,has experienced the biggest percentage increases in recent years, atrend that will continue through 2009, the report predicts. Aftermodest growth in 2004 and 2005, annual construction in this sectoris surging–with spending more than doubling between 2005 and 2007from $4.1 billion to $8.3 billion. Even at these numbers, thissector has not yet peaked. Citywide non-residential construction isforecast to reach $9.5 billion in 2008 and $11.2 billion in2009.