NEW YORK—New construction projects in New York City grew by 5 percent from 2011 to 2012 to reach $16.1 billion, according to a report released by the New York Building Congress.
The report analyzed McGraw-Hill Construction Dodge data and tallied the total estimated value of all new construction projects, including renovations and alterations.
The overall growth in new construction was driven by a 54 percent surge in new residential construction in 2012, which totaled $5.1 billion—more than double the amount in 2010. New residential construction starts grew for the second consecutive year, yet they are still 14 percent below 2008 levels.
“It looks very promising because the Buildings Department continues to report increasing building permit data. So our estimate is that it will continue to grow and could reach as much as 15,000 units this year,” said Richard Anderson, president of the New York Building Congress.
New construction starts are up overall, despite declines in the public works and non-residential sectors by 12 and 7 percent, respectively. New construction projects have been declining for 3 years in the non-residential sector and for 4 years in the public works sector.
“I don’t think the infrastructure is going to turn around because it’s on a slow decline, and the big public agencies are seeking to maintain what they have,” said Anderson. “I don’t think we will see an increase.”
