New construction hits eye-popping $40.9B in 2015

Figure represents 53% increase over 2014

New York /
Mar.March 09, 2016 08:00 AM

New construction in New York City reached a staggering $40.9 billion in 2015, thanks in part to massive projects such as Hudson Yards, according to a new report by the New York Building Congress.

The value of all projects initiated citywide in 2015 was $40.9 billion, a 53 percent jump from 2014, according to the report. Collectively, these projects will take up 83 million square feet of new and existing floor space in the city, most of which — 58 million square feet — will be residential. Though most of the projects were residential, the top three by value were major office developments in Midtown West: Related Companies’ 30 Hudson Yards and 55 Hudson Yards, as well as Brookfield Property Partners’ 1 Manhattan West. The report included new ground-up construction and renovations to existing buildings.

New York Building Congress President Richard Anderson struck a cautionary note about the building boom, saying that the uncertainty of property tax abatements and the slowdown of the ultra-luxury residential market could stall further growth.

“Perhaps never before in New York City has so much new housing been in the pipeline at one time,” Anderson said in a statement. “The present question is how long we can sustain this sort of pace, especially in the absence of the 421a subsidy program and with increasing reports of a softening market.”

Residential construction starts increased 62 percent from 2014, reaching $19.5 billion, according to the report. Non-residential construction hit $18 billion, a 65 percent year-over-year increase. For the second year in a row, construction starts in the public works sector dropped. Infrastructure projects encompassing bridges, roads and sewer systems hit $3.4 billion in 2015, decreasing from $3.8 billion in 2014, according to the report.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
The Observation Deck at Hudson Yards (Credit: Adam Pogoff)
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Views from 1,100 feet: A tour of Related’s “the edge,” the tallest outdoor observation deck in the Western Hemisphere
Facebook CEO Mark Zuckerberg and Hudson Yards (Credit: Getty Images and Wikipedia)
Facebook close to finalizing Hudson Yards office deal: report
Facebook close to finalizing Hudson Yards office deal: report
55 Bay Street in Red Hook and Brookfield Properties CEO Brian Kingston (Google Maps, Brookfield)
Brookfield pays $45M for Red Hook Amazon facility
Brookfield pays $45M for Red Hook Amazon facility
Eliot Spitzer, Stephen Ross, 506 and 152 West 36th Street and 511 West 35th Street (Google Maps, Related Group, IMDB)
Related Companies nabs land from Spitzer Enterprises for $77M
Related Companies nabs land from Spitzer Enterprises for $77M
KKR chairman Henry Kravis, 30 Hudson Yards and Related Chairman Stephen Ross (Getty)
KKR buys Hudson Yards observation deck for $500M
KKR buys Hudson Yards observation deck for $500M
Radson Development co-founder Jacob Rad and the site of the development (Google Maps, LinkedIn via Rad)
Pair of mixed-use towers to rise at site of Hell’s Kitchen slaughterhouse
Pair of mixed-use towers to rise at site of Hell’s Kitchen slaughterhouse
Hudson Yards (Getty, iStock)
City’s bet on Hudson Yards beginning to pay off
City’s bet on Hudson Yards beginning to pay off
arrow_forward_ios

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

Loading...