Construction in New York City Continues Climbing, Nearing $30 Billion in Annual Spending

Construction in New York City is expected to continue expanding to levels not seen since the mid-2000s, topping $37 billion in 2015. Industry sources predict that overall construction expenditures in 2015 will reach approximately $37 billion, according to New York City Construction Outlook 2013-2015. This report is an annual NYC construction industry analysis and forecast published by the New York Building Congress and the New York Building Foundation.

The continued boom in New York construction is fueled by ongoing government investment in infrastructure projects and continued progress at two large development sites in the city.

The Construction Outlook report also indicated renewed residential construction as a driver for the increased construction spending in New York. Other sources, however, such as the Wall Street Journal, note that residential construction and associated spending remain below pre-2008 levels.

The $37 billion figure in 2015 spending is in contrast to the $27.6 billion in construction spending in 2012. This number would substantially match the spending seen at the height of the city’s construction boom in the middle 2000s.

Employment in the construction industry is also expected to show similar substantial increases. The Construction Outlook report expects more than 123,000 construction jobs in 2014 and nearly 130,000 in 2015. This is in comparison to almost 115,000 construction positions in 2012.

The report also expects residential construction to double between 2012 and 2015, attaining a height of $10.7 billion in spending in 2015. Nonresidential construction is expected to surge nearly 40 percent between 2013 and 2015, from $10.3 to $13.6 billion.

Ongoing government spending on infrastructure projects such as mass transportation, public schools, bridges and roads is expected to continue, but to shrink somewhat from $13.5 billion in 2014 to $12.8 billion in 2015.

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