March 14, 2016
By Stephanie West
New York, NY – The value of New York City construction starts skyrocketed in 2015, fueled by a continued wave of major residential development projects and the start of three major office towers, according to a New York Building Congress analysis of construction data from Dodge Data & Analytics.
The total dollar value of all construction projects initiated in the five boroughs reached $40.9 billion in 2015, a jump of 53 percent from 2014 when construction starts totaled $26.7 billion and more than double the $19.9 billion in starts realized in 2013.
From start to completion, these construction projects will encompass 83 million square feet of new and existing floor space, up from 45 million square feet in 2014. Approximately 58 million square feet involves residential construction, up from 33 million square feet in 2014.
"While the effort to create a Hudson Yards district began more than a decade ago, we are likely to look at 2015 as the year in which the vision truly started to become reality," said New York Building Congress President Richard T. Anderson. "According to the data, the private sector last year committed to more than $5 billion in construction spending in this single swath of Midtown's far west side, which will produce upwards of 10 million square feet of new offices, housing, restaurants, and shops."
The current boom in building activity is being driven in large part by the continued growth in new, ground-up construction projects, which accounted for 76 percent of all residential and non-residential construction starts in 2015, compared to 24 percent for alterations and renovations (A&R) of existing spaces. New construction accounted for 66 percent of all project starts by value in 2014 and 58 percent in 2013.
"New York City and the construction industry are benefitting greatly right now from the private sector's desire to invest in real estate across the five boroughs," Mr. Anderson added. "Our main concern is that government investment in public works is not keeping pace despite the increasing demands inherent with all this economic growth."