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NYBC: Construction Spending Skyrocketing to New Heights

NEW YORK CITY—Expenditures on residential and office construction—as well as on infrastructure enhancement by the government—all appear likely to soar this year and in 2017 and '18, according to a new report.

By Rayna Katz | Updated on October 26, 2016
Richard T. Anderson Anderson: “The big question is whether this pace can be sustained once all the projects in the pipeline have been completed.”

NEW YORK CITY—Thanks to continued strong demand for new residences and offices—along with a rebound in government infrastructure investment—local construction spending is approaching or exceeding record levels, according to a new report by the New York Building Congress, with support from the New York Building Foundation.

NYBC forecasts construction spending here of $43.1 billion in 2016. This represents a 26% increase from 2015, when spending reached $34.3 billion. The Building Congress anticipates the current building boom to continue through the next two years, with $42.1 billion in construction spending projected for 2017 and $42.3 billion in 2018.

This indicates that the current building boom is being driven far more by private sector investment than the previous construction surge of 2007, according to NYBC, when spending was split almost evenly between the government and private sectors.

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