Spending on construction in New York to surpass $32 billion
The report, a three-year forecast produced by the New York Building Congress, projects that total spending will continue to rise to $35.3 billion in 2015 and $35.6 billion in 2016.
This year is forecast to end at a record $32.9 billion in total development activity, a 17 increase from the previous peak in 2007, the report said.
The Building Congress forecasts total residential spending to reach 10.9 billion by the end of the year—an increase of $4.1 billion from 2013. That would grow to $11.7 billion in 2015 and $12.4 billion in 2016
"By way of contrast, New York City managed to invest just $8.3 billion in the residential sector during the three-year, post-recession period of 2009 through 2011," the report says. "Furthermore, the 2016 forecast of $12.4 billion represents a more than 400 percent increase from the post-recession low of $2.4 billion in 2010."
The report anticipates government investment in mass transit, public schools, roads, bridges and other infrastructure to increase from $13.4 billion in 2013 to $14.3 billion by the end of this year. But it will fall again, the report predicts, to $13.3 billion in 2015 and $13.6 billion in 2016.
The city remains the largest purchaser of construction services and, this year alone, will spend about $7.5 billion—53 percent of all government spending and almost a quarter of all construction spending. ■