NEW YORK – According to the New York Building Congress report on Construction Outlook 2020-2022, construction spending for 2020 is projected to exceed actual spending for eight of the past 10 years despite the impact of COVID-19.
According to the report, construction spending is projected to hit $ 55.5 billion in 2020, down 8.5% from $ 60.6 billion in construction spending in 2019. However, the estimated $ 55.5 billion would match the 2017 record.
The New York Building Congress predicts total construction spending will reach $ 168.5 billion in three years between 2020 and 2022. expects $ 56.9 billion in 2021 and $ 56.1 billion in 2022.
The signature release also suggests that New York's construction industry will create fewer than 128,200 construction jobs in 2020, slightly below 2014 levels. The report suggests that employment will pick up again in 2021 with 136,650 jobs and in 2022 with 140,200 jobs. The forecast for 2020 to 2022 is expected to result in an average of 14% fewer construction jobs compared to 2017 to 2019.
Construction Congress expects housing spending to hit $ 17.8 billion this year, down from $ 19.7 billion in 2019. Housing construction is expected to add 20,450 units in 2020 and 15,000 units in 2021, for a total of 50,450 new housing units from 2020 to 2022. The forecast period is likely to result in 33% fewer new housing units and a 14% decrease in built-up area square footage compared to 2017 through 2019.
In addition, spending on the construction of non-residential buildings, which includes office space, institutional development, hotels, and sports and entertainment venues, is projected to be $ 16.6 billion in 2020, down from $ 21.2 billion in 2019 corresponds. For office construction in particular, an increase is expected in 2021 and a decrease in 2022. Spending is being driven by the increase in interior renovations and a decline in core and shell construction. The report also suggests that some of the new starts are likely to be postponed beyond the projected timeframe in 2023 and 2024.
Construction Congress expects the Metropolitan Transportation Authority's construction spending in the five boroughs to increase from $ 8 billion in 2019 to $ 8.7 billion this year.
In addition, the New York and New Jersey Port Authority is expected to invest $ 3.5 billion in capital projects in New York City this year. an increase of $ 2.1 billion in 2019.
"While New York City has been one of the hardest hit areas in the US and is still affected by the effects of COVID-19, the construction industry is weathering the storm and remains the heartbeat of the city's economy," said Carlo A. Scissura, President and CEO of the New York Building Congress. “This report shows both the resilience of the construction industry and that investing in infrastructure creates jobs and stimulates economic recovery. The building congress will continue to work to ensure that this growth continues for years. "