For the fifth year in a row, the construction industry is booming in the Big Apple. Non residential construction spending, which includes office space, institutional development, government buildings, sports/entertainment venues and hotels, could reach as high as $39 billion in 2018 alone.
Non Residential Construction Spending Climbs $15.5 billion in One Year
According to a recent New York Building Congress report, the city that never sleeps is experiencing a level of construction production not seen since the early 1970s. And, there’s few signs of it slowing down any time soon.
- Last year, New York City contractors produced 23.6 million gross square feet of non residential space.
- More square feet were constructed in 2018 than any other year since 1995.
- Non residential construction projects could add a record high of 39 million gross square feet this year.
- The $14.8 billion that was invested in New York City public works projects in 2018 was the most in nine years.
More Construction Spending Means More Local Jobs
“This boom equals more jobs for New Yorkers and a stronger economy across the state,” New York Building Congress president and CEO, Carlo Scissura told Curbed.com.
- New York City construction employment is projected to increase for the seventh consecutive year.
- Overall construction employees could eclipse 150,000 jobs for the second year in a row.
However, the New York Building Congress has forecasted a moderate dip in local construction employment in the next year.
Spending Spike could be Short-lived
Non residential construction spending is expected to fall to about $30 billion next year. The Building Congress also projects that by 2020 this type of spending will drop even more to $23.4 billion.
The current spike in non residential construction spending has been attributed to an increase in New York City office construction.
With businesses like Amazon and Google opening up offices in the five boroughs, it is likely the demand for new office space will continue to rise in the future. But at the same time, major New York construction projects, like Hudson Yards and One Vanderbilt, will soon be completed.
As 2019 gets ready to begin, the New York construction industry is poised for yet another profitable year. From electricians to masons, non residential projects will continue to create opportunities for many local contractors.