NYC Construction Spending to Reach $43b
NYC Construction Spending to Reach $43b

NYC Construction Spending to Reach $43b

NYC Construction Spending to Reach $43b

Construction spending in New York City is on track this year to surpass the record set just before the financial crisis as an all-time high in city jobs drives strong demand for new housing and office space, an industry association said on Tuesday.
The New York Building Congress forecast construction spending this year will reach $43.1 billion, a 26% increase from 2015 and the first time the metric will have eclipsed the $40 billion mark in the city, Reuters reported.
The association projected spending of $42.1 billion in 2017 and $42.3 billion the year after as the biggest building boom since the 1980s changes the skyline in downtown Manhattan, its far West Side and in Long Island City across the East River.
New York City employment has grown 18% since late 2009, the strongest pace in decades, as seasonally adjusted nonfarm employment rose to a record 4.3 million jobs in September, according to the state’s Department of Labor.
Growth in private sector jobs increased 2.3% in the city, faster than the US average of 1.9 %, as millennials seek to live, work and play in urban environments.
On an inflation-adjusted basis, this year’s projected spending on residential and non-residential buildings is 47% greater than 2007, the previous peak when $31.1 billion was spent on city construction, the association said.
However, after-inflation government spending on infrastructure is expected to be 39% less than 2007, a sign the current boom is being driven more by the private sector than the previous surge when spending was split almost evenly.
Almost a dozen marquee office buildings will be completed or be under construction in Manhattan by 2018, including five towers in or nearby the mammoth Hudson Yards project on the far West Side, 3 World Trade Center downtown and One Vanderbilt adjacent to Grand Central Terminal in Midtown.
Global capital is increasingly looking to New York real estate for investment returns, which poses a double-edged sword, said Jesse M. Keenan, a faculty member at the Graduate School of Design at Harvard University.
While softening the economic cycle’s downside, the capital flowing to New York also forces domestic returns lower.
It remains to be seen whether this money can diversify asset classes to repair decaying infrastructure, house the elderly and poor, or prevent the exodus of highly productive mid-career workers who cannot afford to raise families in the city, he said.


Short URL : https://goo.gl/Pcxagy
  1. https://goo.gl/zhFTeM
  • https://goo.gl/2iXliS
  • https://goo.gl/VR1T3D
  • https://goo.gl/VqYpdS
  • https://goo.gl/rKgFPG

You can also read ...

Saudi Arabia Bleeds as Capital Flight Continues
As Saudi Arabia raises the stakes in its dispute with Canada...
Experts Say China Economy Manageable
Recent external pressures, a general global trade malaise...
Qatar Pledges $15b Investment :      Turkish Lira Weakens 6% on Threat of More US Sanctions
Turkey’s battered lira weakened more than 6% against the...
Europe Should Resist Illegal US Penalties
European countries should take effective steps to counter US...
 Final Nail in Abraaj Coffin
The Abraaj Group has been put through the ringer in past...
 Crypto Scams on the Rise in UK
Crypto currency scams are using images of celebrities and...
Indonesia Sets Moderate Growth Goals
Amid rising external pressures, Indonesia’s economy is...
Australia Drought Could Cost $12 Billion
The Reserve Bank of Australia and a new report have warned of...

Add new comment

Read our comment policy before posting your viewpoints