More construction — but fewer residential units — in 2014

Builders' money continuing to go into a limited number of homes for wealthy buyers

From left: Baccarat Hotel and Residences construction and Richard Anderson
From left: Baccarat Hotel and Residences construction and Richard Anderson

Residential construction spending will likely hit a new record this year, but far fewer New Yorkers stand to benefit from the building than in the past.

The New York Building Congress estimates in a new report that builders will spend $10.2 billion this year, up from $6.8 billion last year. Those outlays will create just 20,000 new units, compared with a pace of 30,000 homes per year achieved in past cycles.

The disparity is largely due to developers’ focus on building luxury properties for wealthy home buyers, Crain’s reported.

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“While the luxury residential market is booming in Manhattan and in parts of Brooklyn and Queens, we have our work cut out for us in terms of achieving Mayor [Bill] de Blasio’s plan to create or preserve 200,000 units of affordable housing over the next decade,” Richard Anderson, president of the Building Congress, said in a statement cited by the website.

New York has fallen behind other major metros in homebuilding. Approved residential permits have recovered to pre-crash levels in other cities. In Gotham, however,  the number of approved projects last year was roughly half the amount authorized in 2008. [Crain’s]Tom DiChristopher