New York City construction spending is forecast to set a new record and reach $61.5 billion this year – marking a nearly 10 percent increase from 2018 when construction spending reached $56 billion – according to the New York Building Congress’ new report, Construction Outlook 2019-2021, released this week at the organization’s Construction Industry Breakfast.
Based on economic forecasting, construction industry spending is expected to reach $65.9 billion in 2020 and $62.1 billion in 2021. Total construction spending between 2019 and 2021 is expected to reach $189.5 billion.
“The building industry drives New York’s economy and ensures that all of its sectors, from health care to education to transportation, can thrive,” said Carlo A. Scissura, president and CEO of the New York Building Congress.
“Our new report shows that construction in New York keeps booming and is creating tremendous economic growth. The Building Congress will continue working to ensure that this growth lasts for years to come.”
The Construction Industry series is a leading quarterly event organized by the New York Building Congress to bring together industry leaders to discuss some of the region’s most pressing issues. This breakfast was co-hosted by AT&T; Bravo, A Cooperative Company; Halmar International; and STV Group.
During the breakfast, Rick Cotton, executive director of The Port Authority of New York & New Jersey, laid out sweeping plans to transform New York’s subpar airports into state-of-the-art aviation hubs. These plans include the new LaGuardia Airport, which will be the first new airport in the country in 25 years.
“Across the metropolitan region, the Port Authority is making tangible progress on its $30 billion plan to completely transform our legacy airports into world class facilities that meet the standards of today’s travelers,” said Cotton. “
The redevelopment projects at all three major airports include brand new terminals that are double or triple the size of today’s facilities with modern amenities, customer-focused technologies, and predictable, reliable, and, very importantly, sustainable rail mass transit links with new AirTrain Newark and AirTrain LGA.”
The Construction Outlook is a signature publication providing a three-year analysis and forecast of construction spending and employment in New York, while also providing deeper insight into the factors that could shape the industry and New York City’s economy in the coming years. The latest release details a continued increase in construction spending over the next few years. Key points from the report include:
• Construction employment expected to increase in 2019: New York City construction employment is poised to increase for the eighth consecutive year to 161,000, surpassing 150,000 jobs for the third year in a row. The Building Congress forecasts employment to dip slightly in 2020 to 157,200 jobs and again in 2021 to 153,600 jobs.
• Residential construction spending to reach $19.7 billion in 2019: The Building Congress anticipates $19.7 billion in residential construction spending this year, up from $17.3 billion in 2018.
• Non-residential construction spending to reach $21.2 billion in 2019: Non-residential construction spending, which includes office space, institutional development, sports and entertainment venues and hotels, is expected to reach $21.2 billion in 2019, up from $20.4 billion in 2018.
• Metropolitan Transportation Authority (MTA) spending to increase: The Building Congress foresees construction spending by the MTA in the five boroughs to increase to $8 billion this year from $7.3 billion in 2018.
• Port Authority Spending to Increase: The Port Authority of New York & New Jersey is expected to invest $2.1 billion this year in New York City capital projects, up from $1.7 billion in 2018.