Non-residential construction appears to be booming in New York City as residential construction takes a back seat.
The non-residential construction industry is looking very strong in New York City. A new report suggested construction spending in the city is estimated to reach $61.5 billion by the end of the year.
Not only is this a 25 percent increase from 2017 spending, which hit $49.3 billion, but this would mark a record high for the city’s entire history in non-residential construction spending. Spending for non-residential development is slated to reach $39 billion, according to the report, while in 2017 it was $23.5 billion.
Because of this spending, construction employment in the non-residential sector is expected to increase for the seventh consecutive year, surpassing 150,000 jobs for the second consecutive year.
Residential construction experiences slow but steady YOY growth
In New York City, residential construction spending is expected to reach $14 billion by the end of 2018, which would be up from $13.2 billion last year. These numbers reflect both spending on new construction and renovations or alterations to existing structures.
According to the U.S. Census Bureau, privately owned housing starts across the country were at a seasonally adjusted annual rate of 1,201,000 in September. This is 3.7 percent above September 2017 rate of 1,158,000. Privately owned housing completions were at a seasonally adjusted annual rate of 1,162,000. This is 7.0 percent above the September 2017 ate of 1,086,000.
In the Northeast, housing starts were up 18.8 percent annually and completions were up 41.3 percent from the previous year.