| Charts
and Diagrams
Nearly $17 billion was spent on residential, non-residential and infrastructure projects in New York City in 2003. The outlook for construction spending in 2004 is $15 billion, down 10% from 2003, followed by $14.6 billion in 2005. Accelerated activity in Lower Manhattan may spur recovery by 2006, when spending should reach $15.8 billion. Much depends on the infrastructure contribution of major public agencies, which are experiencing debt crunches,
federal funding uncertainties, and operating demands for scarce resources.
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From a peak of 122,000 jobs in 2001, construction employment fell to 115,600 after the events of 9/11, when a pattern of decentralized office growth occurred in the New York City area. Still, employment is on the rise and may surpass the 2001 level in 2006 (at 124,500 jobs).
Public spending underwrites significant additions to New York’s institutional facilities. Between 2004 and 2006, work on schools and psychiatric centers will become more prominent as hospital construction declines and the building of new court houses remains strong.
After a 12.4% rise to 20,800 units in 2003, construction is likely to hold steady at about 20,000 units per year through 2006, assuming favorable interest rates continue.
After peaking at over 21 million square feet in 2001, non-residential construction fell to 15 million square feet in 2002, in response to the events of September 11th and the recession. Modest growth to 16.9 million square feet occurred in 2003, followed by a decline to 5.8 million square feet in 2005. 2006 should rebound with 9 million square feet of growth, portions at the World Trade Center site.
As the New York City Capital Budget declines slightly over the 2004-2006 period, the MTA and Port Authority of NY&NJ could pick up some of the slack in infrastructure spending.
However, the MTA 2005-2009 capital plan is facing significant financial uncertainty with regard to City, State and Federal financing. |
