New developments are constantly on the rise in New York City, but a new analysis from The Real Deal shows that construction on new hotels has been outpacing apartment construction.
Per TRD, one out of five dwellings that are currently under construction in New York City is in a hotel—the highest proportion of hotel development since 2013. This uptick can be attributed to a slow but steady downward trend of active apartment construction over the past two years while hotel construction has continued to grow.
In their analysis, TRD found that hotel construction has nearly doubled from 8,000 in 2013 to more than 20,000 today. Meanwhile, “this July, construction began on 45 apartment projects totaling 1,200 dwelling units over 1.1 million square feet, whereas construction wrapped up for 43 projects totaling 1,400 units and 1.5 million square feet.” This means there was a net reduction of 200 units and 400,000 square feet in active construction, though the number of projects increased by two.
The Real Deal used news building job filings that had already received an initial building permit from the Department of Buildings, but had not yet been issued a temporary certificate of occupancy. The analysis removed jobs from the active population one year after the expiration of their recent permit to account for abandoned projects.
While hotel construction seems to be outpacing apartment developments, TRD notes that hotel construction is actually just catching up to the growth rate of its counterpart. The chart below is a reflection of the changes in both since January 2013.
- The NYC hotel construction boom is back [The Real Deal]