New York City boom bounces back
The extended building boom continues, even though construction spend in New York City dipped 12 percent in 2017, after exceptionally strong levels of activity in 2016. Expenditure in 2017 at USD45.3bn was still the second highest on record and it is expected to bounce back to USD52.5bn in 2018. The recent tax cuts are hoped to tempt businesses to relocate back to the USA, with New York City a hot destination.
Non-residential and government-funded construction will drive much of the growth in 2018 and 2019. Government expenditure is expected to reach USD16bn, with half spent in New York City.
New York is currently experiencing massive redevelopment. The biggest project is the USD20bn Hudson Yards, which includes 18 million sqft of commercial and residential space. The Long Island Express, a USD10bn transport project, includes a station under Grand Central. Meanwhile, La Guardia airport is adding a new USD8bn terminal. Employment in construction is at record levels with skilled trades in short supply.
|Market:||Staying the same|
|Cost escalation 2017–18:||3.5%|
|Cost escalation 2018–19:||3.5%|
|Location factor (USD):||136.2|
Ten years after the Global Financial Crisis the future looks bright for construction in New York, driven by high levels of economic growth. Construction costs remain some of the highest in the world and are expected to keep rising as skills shortages persist.
This content is part of the International construction market survey 2018