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NY Resi Construction Spending to Hit $26B
The New York Building Congress (NYBC) anticipates a slight increase in residential construction spending in New York City during 2023, despite a sharp decline in new residential building permits.
The NYBC’s report predicts approximately $26.4 billion will be spent on residential construction, with renovations, rehabilitations, and conversions making up the majority. Ground-up apartment buildings and homes account for only 23% of the residential space under construction this year, with renovations and additions making up the remaining 49%.
The NYBC attributes the decline in residential development to the expired 421a tax exemption and higher interest rates, and it recommends support for transit-oriented development and a rollback of the city-specific cap on new residential floor area. Spending on nonresidential projects is expected to rise significantly in 2023, making up 42% of all construction spending. Government construction spending is also set to reach $22 billion, with funding allocated for schools, infrastructure, city office buildings, transit infrastructure, and roads.
- ◦Financing
