Construction spending falls in New York City, but outlook is positive

Photo by Dorothea OLDANI on Unsplash
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Construction spending in one of the country’s largest markets is rebounding from last year’s dip, when non-essential construction paused for 11 weeks due to the pandemic.

Construction spending in New York City will hit about $60.6 billion in 2021, up 26% since 2020, according to a new report from the New York Building Congress.

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Compared to pre-COVID-19 levels though, that remains down from 2019 by $1.4 billion, or 2%, in current dollars and $6.4 billion, or 10%, in inflation-adjusted dollars.

Spending is expected to reach a total $174.1 billion over the three-year period from 2021-2023, declining to $56.8 billion in 2022 and again to $56.6 billion in 2023, according to the report. Still, it’s projected to be the second-highest three-year period in the city’s history.