The New York Building Congress and the New York Building Foundation released their 2021-2023 New York City Construction Outlook, part of an annual series the two organizations prepare for the industry.
The Construction Outlook forecasts $60.6 billion in New York City construction spending in 2021. In nominal dollars, this represents development growing $12.3 billion, or 26 percent, since last year, when non-essential construction was paused for a staggering 11 weeks. Compared to pre-COVID levels, however, spending is down from 2019 – $1.4 billion, or 2 percent, in current dollars and $6.4 billion, or 10 percent, in inflation-adjusted dollars.
Residential spending in New York City over the next three years is not expected to bounce back from its plummet in 2020 while non-residential spending on commercial, education, recreational and industrial facilities will struggle to make gains when accounting for nationwide increases in the cost of materials and labor.
Although construction employment in 2021 is projected to be at its lowest level since 2014, the building industry could create tens of thousands of new jobs within three years. The Building Congress anticipates employment in the construction of buildings, heavy and civil engineering and specialty trades to total 135,000 jobs in 2021, 140,200 in 2022 and 157,100 in 2023.
NYBC Members can download the Outlook here.