New York '08 Construction Spending Rose

New York, NY, June 10, 2009--Unlike many areas of the country, construction spending in the New York area rose 4% to $31.8 billion in 2008, a performance that experts don’t expect to see duplicated this year.

Non-residential construction, including office space plus sports and entertainment venues, rose 25% to $10.9 billion, according to a report released by the New York Building Congress, an industry trade group. That’s more than triple the amount five years ago when spending stood at $3.1 billion.

However, some of projects that spurred that spending, such as the new stadiums for the Yankees and Mets as well as the Bank of America Tower, are essentially complete. Meanwhile, other projects such as the World Trade Center, Atlantic Yards and numerous residential projects are stalled, portending a drop in spending this year. The Building Congress identified 17 announced projects that are delayed.

Signs of weakness in the residential market started appearing last year when construction spending slipped 3% to $5.9 billion. In addition, government construction spending, which includes expenditures by the city, state and federal governments—as well as regional bodies like the Port Authority of New York & New Jersey—fell slightly last year from the $15.6 billion reached in 2007. That marks the first annual decline since 2003.

“Unfortunately, most signs are pointing down for the current year,” said Richard Anderson, president of the Building Congress, in a press release. He noted that residential permits and monthly employment have been on steady decline since late last year.