While actual construction spending in 2019 ($60.6 billion) notched close to the forecasted ($61.5 billion) amount, the COVID-19 pandemic, State-ordered halt of non-essential construction and overall downturn in the regional economy have resulted in a dramatically different forecast for the years ahead.
The City of New York is forecasted to spend $7.5 billion on infrastructure in 2020, down from $8.4 billion in 2019.
In its 2020-2022 New York City Construction Outlook the New York Building Congress forecasts $168.5 billion in construction spending.
The Outlook, released in October, estimates government spending to remain above 2019 levels ($19.7 billion), non-residential to increase year over year back to 2019 amounts ($21.2 billion) and residential spending to continue to decline ($19.8 billion).
Residential construction spending is anticipated to total $17.8 billion this year, down from a peak of $19.7 billion in 2019. The Building Congress forecasts residential spending, which includes new construction as well as alterations and renovations, to fall to $14.3 billion in 2021 and $12.5 billion in 2022. Average spending across the forecast years will be consistent with average spending between 2014 and 2018.
Non-residential construction spending, which includes office space, retail, institutional development, sports & entertainment venues and hotels, is expected to total $16.6 billion in 2020, down from $21.1 billion a year ago. Within two years, the Building Congress forecasts spending will recover, rising to $19.5 billion in 2021 and $21.8 billion in 2022.
Construction spending on government projects is predicted to top $21.1 billion in 2020, up from $19.7 billion the previous year. The Building Congress forecasts government spending to increase to $23.1 billion in 2021 and level out at $21.9 billion in 2022.
For more information, please visit www.buildingcongress.com