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Photo courtesy of Nontraditional Employment for Women
BY THE NUMBERS
New York City is in its second and
most robust building boom of the
21st century, experiencing the
highest levels of investment and
employment in history.
6th Year
of New York City Building Boom
$61.5 Billion
in 2019 Construction Spending
$189.5 Billion
in 2019-2021 Construction Spending
161,000
Construction Jobs in 2019
2ANNUAL CONSTRUCTION SPENDING
The New York Building Congress gross square feet of floorspace was and renovations to existing
forecasts $61.5 billion in New York built. An estimated 79.1 million and buildings, is projected to drop to
City construction spending in 2019. 73.9 million gross square feet will $17.6 billion in 2020 and level out
This would represent a nearly 10 be constructed in 2020 and 2021 to $18.1 billion in 2021.
percent increase from 2018, when respectively, both well exceeding
The amount of new housing starts is
construction spending reached the previous 10-year average of
forecasted to reach nearly 90,000
$56 billion, making it the highest 52.8 million gross square feet.
units between 2019 and 2021,
total in actual dollars in New York
averaging 30,000 units annually.
City history. It would also rank first Non-Residential Though the forecast is down from
since 1995 – when reliable data
Non-residential construction a peak of 34,800 units in 2015, it
became available – after adjusting
spending, which includes office is 3,300 units above the average of
for inflation. Based on economic
space, institutional development, the past five years.
forecasting, the Building Congress
expects this level of spending to sports & entertainment venues and Residential construction is
increase to $65.9 billion in 2020 hotels, is expected to reach $21.2 forecasted to add an additional 52.1
and reach $62.1 billion in 2021. billion in 2019, up from $20.4 million gross square feet in 2019
billion a year ago. and level out to 45 million square
Employment The Building Congress forecasts feet in both 2020 and 2021.
construction spending in the
The number of New York City
construction jobs is poised to
non-residential sector to increase Government
to $23.8 billion in 2020 and drop
increase for the eighth consecutive While private sector investment
to $21.2 billion in 2021. This type
year to just over 161,000 jobs remains the primary driver
of construction is forecasted to
in 2019. The Building Congress of construction, government
add an additional 51.2 million gross
forecasts employment to dip in infrastructure spending has
square feet in 2019 – a record
2020 to 157,200 jobs and again in increased each year since 2016 and
high – followed by 34.1 million
2021 to 153,600 jobs. Compared is predicted to continue increasing
gross square feet in 2020 and 28.9
to the previous three-year average, through 2020.
million gross square feet in 2021
the three forecasted years average
4,900 more jobs. Government spending on public
Residential works, which includes investments
Floorspace The Building Congress anticipates
in mass transit, roads, bridges and
other essential infrastructure, is
$19.7 billion in residential expected to reach $20.6 billion in
The Building Congress forecasts
construction spending this 2019, compared to $18.3 billion
103.3 million gross square feet of
year, up from $17.3 billion in in 2018. Spending in this sector is
floorspace will be built in 2019,
2018. Residential spending, anticipated to increase further to
the largest amount since at least
which includes spending on new $24.5 billion in 2020 and settle at
1995 and a 28 percent increase
construction, as well as alterations $22.8 billion in 2021.
from 2018, when 80.7 million
Construction Spending in New York City RESIDENTIAL NON-RESIDENTIAL GOVERNMENT
$70 B PROJECTED
$60 B
$50 B
$40 B
$30 B
$20 B
$10 B
0
19
20
04
06
08
09
03
05
02
20
07
01
10
14
16
18
13
15
12
21
17
11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: Dodge Data & Analytics, NYS Department of Labor, public sector capital budgets, US Census Bureau, Urbanomics 32018 SURPASSES HISTORIC RECORDS
2018 was one of the most more than 78,300 new units system and private institutions
productive years for the building of housing between 2016 and of higher education. The Building
industry in the city’s history. 2018, among the most productive Congress anticipates this trend
Although reliable data only extends three-year periods for residential will hold as projects like Columbia
to 1995, it is safe to assume New construction on record. In University’s Manhattanville Center
York has not witnessed this level of upcoming years, major projects and Fordham University’s Lincoln
production since the early 1970s, expected to be completed include Center expansions pass the design
and there is no sign of it slowing Long Island City’s Skyline Tower phase.
down. and Pacific Park’s 18 Sixth Avenue,
The healthcare industry is another
each with over 800 units and
After reaching $55 billion for the major institution builder in the city.
nearly one million square feet.
first time in 2017, construction Since 2016, the construction of
spending continued to increase, Last year, New York City produced hospitals has contributed $3 billion
totaling $56 billion by the end of 34.8 million square feet of non- to the economy. When tallied with
2018. To put that into perspective, residential space, more than any clinics, medical offices, assisted
the average over the previous 10 year since 1995. living facilities, nursing centers
years was $34.9 billion. and laboratories, the healthcare
The primary driver of non-
industry reached $4.5 billion in
residential spending continues to
The Building Boom be office construction, which is at
construction spending. Some of the
largest projects included the Helen
Benefited all Sectors: its highest levels in three decades
L. and Martin S. Kimmel Pavilion at
and accounted for a third of non-
• 80.7 million gross square feet of NYU Langone, the David H. Koch
residential spending over the past
new residential and non-residential Center and New York Methodist
three years. The Building Congress
space was created last year, the Hospital. The Building Congress
estimates 16 million square feet of
most productive year on record. expects these levels of spending to
office space will be completed in
persist as the healthcare industry
• 27,200 housing units were started Manhattan alone during the three-
continues to grow. Currently in
in 2018, surpassing the previous 10- year forecast period.
the design phase, the Lenox Hill
year average by 8,200 units. After office construction, the Hospital expansion, Coney Island
• $18.3 billion was invested in New education sector is the second Hospital Campus and Alexandria
York City public works projects last largest source of non-residential Center North Tower are likely to
year. construction spending. Over lead construction spending.
the past three years, this sector
2018 marked the fifth consecutive
accounted for over $9 billion in
year in which over 20,000 housing
capital spending and has been
units started construction. New
led by the City’s public school
York City witnessed the start of
Construction Employment SPECIALTY TRADE CONSTR.OF HEAVY & CIVIL
in New York City CONTRACTORS BUILDINGS ENG. CONSTR.
200, 000
PROJECTED
150,000
100,000
50,000
0
04
06
08
09
03
05
02
20
07
01
10
14
16
18
13
15
12
21
17
19
11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: NYS Department of Labor, Urbanomics 4PUBLIC SECTOR GROWTH
the greatest increase in capital between 2019 and 2021 would be
City of New York commitments. By fiscal year 2023, $6.8 billion more than the past
Infrastructure spending by the City 16 percent of the capital budget will three years, from 2016 to 2018.
of New York continues to move in be committed to projects for the
the right direction after years of While the MTA released its
administration of justice, largely
declining investment. The City of 2020-2024 Capital Plan with
due to the Rikers Island Relocation
New York is forecasted to spend $51.5 billion in commitments, the
Facilities.
$9.3 billion on infrastructure in Building Congress estimates more
2019, up from $8.2 billion in 2018. Although capital commitments conservative levels of spending over
The Building Congress anticipates are representative of the City’s the three forecasted years. The
spending to continue increasing priorities, actual expenditures bulk of related expenditures in the
to $10.7 billion in 2020 and $11.8 will depend on the spending of 2020-2024 Capital Plan will likely
billion in 2021.1 individual agencies. Moreover, while occur after 2021. The amount of
appropriations have fluctuated actual construction spending in the
If the 2019 forecast is achieved, it over the years, expenditures have upcoming years will depend on the
will be the first time since 2007 increased steadily. MTA’s execution of its current and
that the City’s spending exceeds $9 past Capital Plans.
billion. In addition, the anticipated
spending for 2020 and 2021 would Metropolitan In the most recent Capital Plan,
mark the highest-ever spending Transportation the MTA committed $40.8 billion
totals for the City’s capital projects. for NYC Transit, including signal
For fiscal year 2020, the City
Authority modernization, ADA-accessibility
The Building Congress foresees improvements and new subway
committed $12.7 billion – 28 cars and buses. Some of the
percent for education, 18 percent construction spending by the
Metropolitan Transportation priority projects will be the Second
for both housing & economic Avenue Subway Phase 2, East Side
development and city operations Authority (MTA) in the five
boroughs to increase to $8 billion Access and four new Metro-North
& facilities, 17 percent for both stations in the Bronx. To fund the
transportation and environmental this year from $7.3 billion in 2018.
MTA spending is anticipated to capital program, the MTA expects
protection and three percent for congestion pricing to generate $15
the administration of justice.2 increase to $8.9 billion in 2020
and drop to $6.1 billion in 2021. billion, in addition to traditional
Over the next five years, the federal, state and city sources.
administration of justice will see The total spending of $23 billion
1
Unless otherwise noted, all figures and estimates are in calendar years
2
Percentages do not total 100 due to rounding.
Capital Spending of Public Agencies in New York City NYC MTA PANYNJ OTHER
$30 B
PROJECTED
$25 B
$20 B
$ 15 B
$ 10 B
$5B
0
04
06
08
09
03
05
20
02
07
10
01
14
16
18
19
13
15
21
12
17
11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: public sector capital budgets, Urbanomics 5The Port Authority of Public Works
New York & New Jersey The remaining $1.2 billion in 2019
public works spending will be
The Port Authority of New York & undertaken by agencies on the state
New Jersey is expected to invest and federal levels, including the
$2.1 billion this year in New York Dormitory Authority of the State
City capital projects, up from of New York, the New York State
$1.7 billion in 2018. The Building Department of Transportation and
Congress estimates that the Port the U.S. Army Corps of Engineers.
Authority’s construction spending These entities are expected to
in the city will increase significantly increase construction spending
in the coming years to $3.5 billion within New York City slightly over
per year in both 2020 and 2021. the next two years, totaling $1.3
In addition to funding general billion and $1.4 billion in 2020 and
maintenance and repairs, a 2021 respectively.
considerable portion of the $7
billion in total Port Authority
spending in 2020 and 2021 is
earmarked for JFK and LaGuardia
airports, including the LaGuardia
AirTrain, as well as capital
improvements related to its
Midtown bus terminal, the PATH
system, Lincoln Tunnel and George
Washington Bridge.
Although a tenth of that spending
is set aside for the 70-year-old bus
terminal, the timeline for building
a new one is still pending. The Port
Authority is deciding between
several approaches, and until a
design is chosen, the agency’s
future construction expenditures
are variable.
Floorspace Construction in New York City (GSF) RESIDENTIAL NON-RESIDENTIAL
120 M
PROJECTED
100 M
80 M
60 M
40 M
20 M
0
04
06
08
09
03
05
20
02
07
01
10
14
16
18
19
13
15
21
12
17
11
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: Dodge Data & Analytics, NYS Department of Labor, public sector capital budgets, US Census Bureau, Urbanomics 6PRIORITIES AND RECOMMENDATIONS
Invest Innovate Plan
To address current concerns While other industries see To accommodate population
and meet our future needs, innovation as a fact of doing growth, the City must continue to
the Trump Administration and business, the building industry is explore and develop comprehensive
Congress should develop and still employing techniques from the rezoning strategies throughout
pass a comprehensive national 20th century. To take the leap into the city. Successful rezonings
infrastructure plan that includes the future of building, the private promote the growth of livable
dedicated funding for critical and public sectors must advance neighborhoods, foster jobs and
projects like the Gateway Program, the use of new technologies and economic development, invest in
the failure of which would lead to methods, like modular construction essential services and infrastructure
billions of dollars in lost economic to speed up project delivery, 3D and create housing for all income
activity for the region. printing to reduce material waste levels.
and drones to assess buildings’ state
To maintain and strengthen The City and State must support
of repair.
the region’s inter-connected the expansion of vital industry
transportation network, leaders As the construction industry faces sectors that have a strong and
at the state level must fully a talent shortage, it is critical to growing presence in all five
finance and follow through on engage, retain and develop the boroughs, particularly healthcare,
the delivery of the MTA’s and the next generation of leaders that higher education and cultural
Port Authority’s capital programs. will bring fresh ideas and embrace institutions. At the same time, the
New York, with much of its innovation. The industry must public and private sector should
core infrastructure built in the provide mentorship, professional work together to strengthen and
midcentury, must continuously development and advocacy for its foster hubs for growth industries,
reinvest in its critical systems to young professionals. such as technology, cybersecurity,
remain competitive today and in life sciences and logistics.
As the City and State maintain
the future.
their goals for participation of Climate change is among the
While the City of New York has minority and women-owned toughest challenge New York City
made unprecedented levels of firms in capital construction, will face in the coming decades.
infrastructure investment, it must efforts must be made to improve The public and private sectors must
continue this path as crises like Minority and Women Owned continue efforts to implement long-
the affordable housing shortage Business Enterprises (MWBE) term reductions in carbon emissions
threaten continued population capacity-building programs and produced by New York’s buildings,
growth and economic expansion. provide additional resources to transportation and solid waste as
ensure meaningful inclusion and well as intensify its efforts to make
development of MWBE firms. its infrastructure more resilient.
New York Building Congress New York Building Foundation
buildingcongress.com nybuildingfoundation.org
@bdgcongress
The New York Building Congress is a member coalition of business, The New York Building Foundation was formed in 1998 to advance the
labor, associations and government organizations promoting the long-term growth and well-being of the industry through a program of
design, construction and real estate industry in New York City. research, educational and philanthropic activities.
CHAIRMAN CHAIRMAN
Milo E. Riverso, Ph.D., P.E., CCM Jonathan D. Resnick
VICE CHAIRMEN VICE CHAIRMEN
Louis J. Coletti ● Ralph J. Esposito ● Carl Galioto, FAIA ● Maureen A. Charles D. Avolio ● Mark Gregorio ● Kelly Heuer ● Lisa Linden
Henegan ● Cyrus J. Izzo, P.E.● Henry Kuykendall ● Gary LaBarbera ● PRESIDENT TREASURER S EC R E TA RY
Jill N. Lerner, FAIA ● Mitchel W. Simpler, P.E. Carlo A. Scissura, Esq. Kenneth D. Levien, FAIA Jennifer L. Stone, AIA
P R E S I D E N T/C EO TREASURER S EC R E TA RY GENERAL COUNSEL PA ST C H A I R M A N
Carlo A. Scissura, Esq. Sabrina Kanner Joseph G. Mizzi Michael K. De Chiara John M. Dionisio
GENERAL COUNSEL PA ST C H A I R M A N
Michael S. Zetlin Richard Cavallaro
For information on membership, publications and events contact: CREDITS: New York City Construction Outlook 2019-2021 • the 19th in an annual
Tel: 212.481.9230 • Email: info@buildingcongress.com series, was prepared with the assistance of Urbanomics by the New York Building
Congress and the New York Building Foundation • Published October 2019
71040 AVENUE OF THE AMERICAS 21ST FLOOR NEW YORK, NY 10018 019 - 2021 NEW YORK CIT ONSTRUCTION OUTLOO
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