New York construction spending to exceed $100bn in next three years

Construction spending in New York City from this year to 2016 is expected to exceed $100bn, according to a report from the New York Building Congress, an advocacy group promoting growth in the construction industry. 

The New York City Construction Outlook 2014-2016 estimates that there will be spending of  $33bn in the city this year, up 17% from $28bn in 2013. 

Construction spending is expected to increase to $35bn next year and reach $36bn in 2016. 

The three-year report forecasts an increase in construction jobs, from 120,900 in 2013 to 127,300 in 2016. If the 2016 jobs total is reached it would be the second highest level of industry employment in at least two decades, behind the 132,600 produced in 2008. 

Thomas Scarangello, chairman of the congress and the former president of engineer Thornton Tomasetti, said: "New York City is producing more than 20,000 housing units annually, which is the benchmark that the Building Congress believes is necessary to accommodate household growth, replace antiquated buildings, and maintain adequate housing options for New Yorkers of all income levels. 

"What is concerning, however, is that the current level of production is falling far short of the more than 30,000 units that were constructed annually between 2005 and 2008." 

Frank Sciame, chairman of the congress’s Building Foundation arm, said: "Such a wide disparity between spending and production is partially explained by a wave of so-called ultra-luxury condominium towers that are being planned and built in Manhattan. 

"Although any and all new housing stock is certainly welcome, the key to the City’s future success will rest in part on our ability to produce a wide range of housing at multiple price points throughout the five boroughs." 

Read the full report here