The New York Building Congress reports overall construction spending in New York City will drop from $60.6 billion in 2019 to $55.5 billion in 2020—a decline driven by the COVID-19 crisis and ensuing recession, according to www.constructiondive.com. Total construction spending is expected to reach $168.5 billion from 2020 through 2022.
The New York Building Congress predicted nonresidential construction spending will dip to $16.6 billion in 2020 from $21.2 billion in 2019. Office construction, which typically makes up 50% of nonresidential spending, is expected to decrease in 2022 after a 2021 increase.
Total construction employment in New York City also is expected to be affected for the period from 2020 through 2022, with a 14% decrease when compared with the three-year period from 2017 through 2019. The New York Building Congress forecasted 128,200 jobs in 2020; 136,650 in 2021; and 140,200 in 2022.
An increase in spending is expected for Port Authority of New York and New Jersey projects and the Metropolitan Transportation Authority’s capital program, which depend on federal funding. Government spending will account for 40% of total construction spending in New York City, up from 31% for the period from 2017 through 2019.
