Slumping construction industry gets a boost from school expansions

New York /
Sep.September 29, 2010 11:45 AM

As the demand for new hotels and condominium projects has weakened, New York City’s construction industry — which saw a modest increase in costs this year — is turning to the educational market for new opportunities. “Since the private market has declined so much for the past two years, it means the educational sector has grown as an overall percentage of the total market,” Richard Anderson, president of the New York Building Congress, told the Wall Street Journal. In 2008, the peak year, about $31 billion was spent on all construction activity in the city, $4 billion of which was dedicated to public schools and private institutions, Anderson said. In 2009, education construction accounted for $4.4 billion of the $27 billion in construction activity. So far in 2010, the overall market has decreased to about $25 billion, with about $5 billion being spent on school construction, Anderson estimated. But the future is uncertain for the education market, as government revenues are dwindling and private endowments are shrinking. “Our fear is that educational construction may not continue at the current level,” Anderson said. [WSJ]

 

Related Articles

arrow_forward_ios
Eli Weiss and a rendering of 3875 9th Avenue
Developers land $414M for Inwood project after waiting out rezoning fight
Developers land $414M for Inwood project after waiting out rezoning fight
Redeemer’s Timothy Keller and 150 East 91st Street (Getty, Google Maps, Redeemer)
Redeemer Presbyterian’s UES development plans vex co-op residents
Redeemer Presbyterian’s UES development plans vex co-op residents
275 Atlantic Avenue (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Thomson200/CC0/via Wikimedia Commons)
Brooklyn leads NYC in demolition permits — by a wide margin
Brooklyn leads NYC in demolition permits — by a wide margin
Rinaldi Group’s Robert Baselice (Getty, LinkedIn/Robert Baselice)
Kickback city: Rinaldi exec accused of fleecing developers
Kickback city: Rinaldi exec accused of fleecing developers
Urban Umbrella's Benjamin Krall with 500 Main Street (Getty, Loopnet, Crunchbase)
Urban Umbrella brings its artful scaffolding to Texas
Urban Umbrella brings its artful scaffolding to Texas
RiseBoro Community Partnership CEO Scott Short and 75 Linden Street in Bushwick (Getty, RiseBoro Community Partnership, Google Maps)
RiseBoro’s passive house retrofits save landlord a bundle
RiseBoro’s passive house retrofits save landlord a bundle
From left: BTEA's Louis Coletti, Assembly member Rodneyse Bichotte Hermelyn and Sen. James Sanders Jr. (Getty; Illustration by Kevin Rebong for The Real Deal)
Hochul signs bill to raise fines for construction companies
Hochul signs bill to raise fines for construction companies
(Illustration by The Real Deal with Getty)
TRD Pro: Is homebuilding really down?
TRD Pro: Is homebuilding really down?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...