November 6, 2016
By Stephanie West
New York, NY – New York City’s public and private institutions initiated $4.6 billion in construction projects in 2015 and $26.1 billion over an eight-year period between July 2008 and June 2016. The $4.6 billion in 2015 project starts represents the highest yearly total since at least 2009.
The value of construction starts reached $2.6 billion in 2013 and $2.4 billion in both 2012 and 2011. This according to a New York Building Congress analysis of construction data from Dodge Data & Analytics.
“New York City’s public and private institutions continue to be a constant and stable generator of construction spending and jobs,” said Building Congress President Richard T. Anderson. “These investments are more important than ever given New York City’s need to accommodate the residents, visitors, students, and workers who are flocking to the City in record numbers.”
Schools and hospitals continue to be the main drivers of new construction projects in the institutional sector. In the eight years from July 2008 through June of this year, work on New York City public elementary and secondary schools accounted for $9.6 billion, or 37 percent of all institutional construction starts. Of the projects started in the first half of 2016, public schools accounted for 38 percent. Public and private hospitals and healthcare facilities accounted for $8.0 billion, or 31 percent, of all institutional construction starts during the eight-year period, and 32 percent of the projects initiated in the first six months of this year. Institutions of higher education, which include public and private colleges and universities, initiated $4.1 billion worth of construction projects, or 16 percent of the total over the past eight years. In the first half of 2016, higher education accounted for 10 percent of construction starts by value.
“To address current overcrowding and accommodate anticipated enrollment growth, the New York City School Construction Authority has undertaken a five-year, $14.9 billion capital program that, judging from the top projects list, is starting to pay dividends,” noted Mr. Anderson. “It is interesting to note that so many of the larger institutional projects undertaken in early 2016 are happening in the outer boroughs, when you consider that 16 of the top 20 institutional construction starts over the last eight years emanated from the island of Manhattan,” added Mr. Anderson. “This is a potential trend that is worth keeping an eye on, especially in light of all the new residential and commercial development we are seeing throughout Brooklyn, Queens, the Bronx, and Staten Island.”