New York City’s general contractors had a decent 2025. But 2026 is still anyone’s guess.
As inflation shows no sign of abating and mayoral fears cast a long shadow, some builders are worried that their pipeline is beginning to dry up.
Take Broadway Builders. President Bernard Ruf said the company had a busy 2024 and 2025. This 2026 first quarter was good but now there’s less work on the horizon.
“We’re working much, much harder to assemble new projects and assemble the pipeline to keep this the same pace that we’ve had,” Ruf said.
Broadway Builders ranked 27th on the new construction list in The Real Deal’s annual ranking of New York City’s construction firms, based on an analysis of Department of Buildings data.
General contractors on the list say they’re dealing with familiar issues, but now more acutely. Because of the long timelines that construction projects work on, inflation that started spiking in 2021 continues to have a strong impact, meaning slowing demand.
“Inflation has brought up the price of many projects to the point where many projects that were perhaps economically feasible four years ago are no longer such,” said Eli Weiss, principal of Joy Construction, which nabbed the No. 15 spot. “So I think we’re seeing a slowdown now that reflects the reality of pricing and people’s confidence to go forward with a project where pricing is today.”
When prices for materials elevate, developers need to decide whether to hold off on projects or try to pencil it out, Weiss said.
“If you thought you were selling condos for $2,500 a foot and construction prices went up 20 percent, to make up for that you now have to sell those condos for over $3,000 a foot,” he said. “So you have to be comfortable with that.”
The effect of inflation can cut across asset classes, since it shows up in insurance, materials and labor costs.
Fewer projects will likely mean firms jockeying harder for the work that is coming down the pipe. Ruf said Broadway Builders is beginning to look more outside the five boroughs for jobs.
“Now I think in the general contractor market it’s going to be much more competitive,” said Ruf. “We’re all feeding on less food.”
Foreseeing the unforeseeable
The perception of a slowdown could come from the recent mayoral election, housing policy and national politics and tariffs, which in some cases added 25 percent to the cost of overseas goods when they hit in 2025.
Some of those issues may be alleviated soon. The Supreme Court struck down President Trump’s tariffs policy and there has been talk of a refund for consumers.
“It’s relatively unforeseeable how it plays out,” Weiss said. “That just makes it harder to take on projects and have certainty with pricing.”
Multifamily builders say New York’s 485x policy, a tax abatement for housing projects that include affordable units, continues to dampen construction starts. Buildings with more than 99 apartments trigger a wage standard for construction, prompting many developers to build smaller. But because many building requirements aren’t eliminated in smaller projects, the cost per square foot goes up for developers, making it difficult for construction firms to stay competitive, Ruf said.
To be sure, not everyone is seeing a slowdown. Gary LaBarbera, president of the Building and Construction Trades Council, said the union has seen robust employment buoyed by major projects. Those include public infrastructure projects like the $19 billion redevelopment at John F. Kennedy International Airport, as well as behemoth private sector projects like the office towers planned for 175 and 350 Park Avenue.
Gilbane Building Company, which ranked ninth in alterations and 21st in new buildings, has seen a busy first quarter of 2026, up from 2025, said Raquel Diaz, business leader at the firm. Gilbane does multifamily housing, but it also does a lot of work for institutions like universities, museums and the city itself.
“To me that’s just a signal of how we’re investing again in the city. We’re growing and people are not afraid to start building again,” Diaz said. “Universities are back to, ‘Let’s build again.’”
Turbulent waters
Most contractors say they’ve yet to feel major effects from long-simmering national issues.
When President Trump directed Immigration and Customs Enforcement to ramp up deportations and detentions, many thought construction would be one of the first industries impacted.
AB Jabban of Sky Construction Management, a smaller builder focused on hospitality, saw some of this play out late last year. “The guys wouldn’t show up, they would stay at home,” he said. “So that would affect jobs.”
Now he says things seem to have eased.
It remains to be seen whether that will be the case with the war in Iran, which is already affecting oil and transportation prices.
“The professionals in this industry are really accustomed to navigating turbulent waters,” Weiss said. “It’s inherent in the industry.”
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