Indicators point to continued strength in the New York City construction market, according to recent reports from the New York Building Congress.
Both spending on construction and construction employment are up strongly, indicating a stronger market than NYBC anticipated in its October forecast.
“If the trend continues in 2015, we can expect to see construction employment reach 130,000 for just the second time in this decade,” Richard T. Anderson, NYBC president, said.
At the end of May, NYBC reported that private sector construction employment in New York City rose 4.5% in 2014 and 10% since 2012.
Construction employment also rose slightly in the first quarter of 2015, with 121,200 private sector jobs compared with 119,600 jobs in the first three months of 2014, NYBC said in an analysis of New York State Department of Labor employment statistics.
The trade association also noted that this year’s first quarter employment total is the second highest over the past 25 years, trailing only the 128,300 jobs produced in the first quarter of 2008.
And at the end of April, NYBC reported that overall construction spending in New York City hit $36 billion in 2014, a 26% increase from 2013, when total spending reached $28.5 billion.
Construction spending was propelled by spending on residential construction, which skyrocketed to $11.9 billion in 2014, a 73% increase from 2013. That spending level set a new record and marks the first time in the city’s history that annual residential spending has topped $7 billion, according to NYBC’s analysis.
Non-residential spending, which includes office space, sports and entertainment venues, and hotels, was also strong, climbing 20% to $9.8 billion, from $8.2 billion in 2013.