Thanks to upswings in commercial and residential development, New York City construction spending is expected to post a 6.2 percent annual gain to $32 billion in 2013, according to a release from the New York Building Congress. Moreover, the total is expected to rise to $37.3 billion in 2014, which would be 2 percent shy of the 2007 peak, when adjusted for inflation.
“While the effects of inflation and the rebuilding associated with Superstorm Sandy partly explain the projected increase in overall spending, there is no doubt that much of the gain is fueled by increased private-sector development activity and an improving economy,” said Building Congress President Richard Anderson in the release.
Spending in the residential sector is expected to rise 17 percent this year to $6 billion from $5.1 billion. In 2014, according to the report, it will soar to $8 billion. This year, 13,800 homes will be finished — 2,800 units more than in 2012 — and 16,900 in 2014.
The commercial sector is also forecasted to post spending gains due to the burgeoning office construction boom, the report says. This year it will jump 38 percent to $13.5 billion from the $9.8 billion recorded in 2012. In 2014, spending will reach $15.5 billion.
Almost 2.5 million square feet of office space will be added to the Manhattan commercial market this year, and an additional 3.9 million in 2014. This is due to work at Hudson Yards and at 3 World Trade Center, for example.
Despite these gains, government spending — encompassing public schools, roads and bridges — lags behind due to city cuts in construction and infrastructure design. This year alone it will decline 18 percent year-over-year to $12.4 billion. —Zachary Kussin