Construction in Big Apple to Total $83B Over Next 3 Years
Oct 16, 2007
By: Barbra Murray, Contributing Editor
The New York Building Congress has just released its annual construction forecast report, New York City Construction Outlook 2007-2009, and the numbers are looking good for the Big Apple. As per the study's projections, construction spending is on target to reach an estimated total of $83 billion in development over next three years.
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Construction activity by businesses, government and institutions has been on the rise in New York City and, as per the report's projections, will steadily increase on an annual basis through 2009. Last year was a benchmark year, with spending reaching an all-time high of $24.6 billion. The target number for this year is $26.2 billion and 2008 is expected to yield $27.5 billion. In 2009, construction spending is expected to reach a whopping $29 billion.
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A thriving economy is keeping New York City in the building business. The office market in the city is the tightest in the country, with vacancy rates in the low single-digit range. While space is at a premium, development and redevelopment continues. Housing is also bustling, despite the fact that the residential market has experienced significant changes in most other major metropolitan cities across the country. Residential spending in 2006 was $4.9 billion and the figure is on target to increase to $5.6 billion by year's end.
While there appears to be no end in sight for construction in New York City, nothing lasts forever. A more pronounced credit crunch or a significant downturn in the economy could, naturally, have a negative effect on construction successes.
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