New York City’s construction boom is over, according to a report released last week by the New York Building Congress.
Construction is expected to decline by 20% this year, which the report attributed to a sharp drop in private-sector building.
Residential construction is projected to drop to fewer than 6,300 units after five consecutive years in which the industry produced more than 30,000 dwelling units built annually.
Overall construction spending is expected to fall to $25.8 billion this year from an all-time high of $32.4 billion last year, according to the report. On the plus side, government spending on infrastructure — which includes mass transit, public schools, roads, and bridges — is projected to increase this year to $15.5 billion from $15.0 billion in 2008.
“While there is no ignoring the 20% decline in annual spending over the past year, there is reason to be encouraged given that 2008 was one of the most productive in New York City history,” the Building Congress president, Richard Anderson, said in a press release.
He said that even with the decline, construction spending will be 45% greater this year than it was in 2004.
“While external events could affect the forecast, it is encouraging that our initial projections show no additional deterioration, with annual spending hovering between $25 billion and $26 billion through 2011,” Anderson said.