This marks a 25 percent increase in 2017 construction spending when it was $49.3 billion, says “The Construction Outlook,” and credits the spike largely to ongoing construction on non-residential construction (which includes office space, hotels, entertainment venues, institutional development, etc.) throughout the city. Spending for non-residential development is slated to reach $39 billion, while in 2017, it was a mere $23.5 billion.
“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,” says the report.
There’s also an analysis of construction spending on infrastructure and transit initiatives. For instance, the city is forecasted to spend $9.1 billion on infrastructure this year, while the MTA is projected to spend $7.2 billion. Public Authority spending on capital projects in the city are expected to hit $1.9 billion and government spending on”public works,” which includes mass transit, roads, bridges, and other infrastructure could reach $19.5 billion—a 32 percent from 2017 spending which reached $14.8 billion.
“Our new report shows growth in nearly every sector. This boom equals more jobs for New Yorkers and a stronger economy across the state,” said New York Building Congress president and CEO, Carlo Scissura.
Jobs have indeed increased as a result on the construction boom: Construction employment is set to increase for the seventh consecutive year and surpass 150,000 jobs for the second year in a row.
As far as spending on residential construction goes, Building Congress anticipates it to reach $14 billion by the end of this year, up from $13.2 billion in 2017 (these numbers are a reflection of spending on new construction and renovations/alterations to existing buildings). They predict that 60,000 units of new housing will be produced between 2018 and 2020, averaging around 20,000 new units per year.
Read the report in its entirety here.
2018-2020 New York City Construction Outlook [New York Building Congress]