Construction spending in New York to drop due to Covid-19

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The pandemic has reduced planned construction spending by $ 16 billion in 2020 and 2021, according to a new report.The New York Building Congress estimates spending will reach $ 55.5 billion this year, down from the $ 65.9 billion previously forecast by the group. Next year, spending will be roughly flat at $ 56.9 billion, which is also a drop from the trade group’s earlier estimate of $ 62.1 billion.

The group also doesn’t see 2022 as a year of return: spending will drop to $ 56.1 billion, according to the construction industry trade group report.

The analysis highlights the cessation of several months of non-essential construction in the city during the pandemic, as well as the broader economic downturn hitting the region, as the source of the weaker spending forecast. Much of the decline can be attributed to lower spending in residential and non-residential development (including offices, retail and hotels).

Conversely, public expenditure on projects is expected to increase this year and next, despite massive budget deficits linked to the pandemic at all levels of government and in major public authorities. The Building Congress forecasts that these expenditures will reach 21.1 billion dollars in 2020, against 19.7 billion dollars the previous year, then 23.1 billion dollars in 2021. They will stabilize in 2022 at 21.9 billion dollars. dollars, according to the report.

The Metropolitan Transportation Authority says it will have to cannibalize its capital program if the federal government does not respond to its $ 12 billion bailout request, and the New York and New Jersey Port Authority seeks $ 3 billion. dollars in Washington.

Average construction employment between 2020 and 2022 is expected to drop 14% from 2017 to 2019 levels. According to the Building Congress report, 128,200 construction jobs will be created in 2020. This is expected to drop to 136,650. in 2021 and 140,200 in 2022.

(Source: New York Building Congress et New York Building Foundation)

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