14.4% slide in value of residential construction paces a 12% decrease in construction spending overall in 2010; private, non-residential work holds up best, helped by massive rebuilding at Ground Zero
By Marine Cole
Spending on residential construction continued its slide in 2010, tumbling 14.4% to $2.2 billion, accounting for 9% of all construction spending in the year. The number of new units created fell to 5,400 last year, from the depressed level of 6,100 in 2009.
“Residential construction spending has fallen even farther than we had thought,” said Richard Anderson, president of the New York Building Congress, adding that he expects such spending to remain at a low level for several years. In 2008, 34,000 new dwelling units were built in the city at a cost of $6.73 billion, which represented 20% of all construction spending that year. “It was a residential boom that will not be replicated for many years again,” Mr. Anderson said.
Government construction spending, which includes investments in mass transit, public schools, roads, bridges and other essential infrastructures, didn't fare much better last year. It fell by 13.5% to a total of $13.5 billion, compared with $15.7 billion in 2009. Despite the decline, the public sector still accounted for the lion's share of construction—57% of it in fact—in the city last year.
Non-residential construction, which includes office space, institutional development, sports and entertainment venues, as well as hotels, held up the best, falling by 9.5% to $8 billion in 2010. It was spared from further declines thanks to several on-going, big-ticket projects including the World Trade Center, which alone accounted for nearly 20% of all non-residential construction last year. Other large projects included the arena construction at Atlantic Yards and renovations of Madison Square Garden and the Empire State Building and the United Nations.
“The focus of the market is public work and institutional work,” said Mr. Anderson, who also mentioned expansion projects by New York University and by Columbia University
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ReplyDeleteConstruction spending in New York City fell 12% in 2010 to $23.7 billion, with residential construction taking the biggest hit. It's been a bad year in New York for residential building. If you look at the lack of New York Residential Construction Jobs, you can see the impact of the economy. Then look at myself and my friends, who are looking for construction work that is in our field, and you really see the effects. Until recently I had gone quite a while without work. Luckily I recently discovered Dodge Projects. They have wonderfully detailed job listings, and they have sorted them by state and type so that I can easily find the job that is right for me. I would definitely recommend them.
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