Increase Seen In Manhattan Construction Spending

Written By Lara Milbauer | August 25, 2014 | Published in Real Estate Market Trends
2019%2f09%2f13%2f12%2f39%2f54%2fb828b667 5577 4e2c b2c8 dadf670dc8c2%2ffile

As more buildings continue to rise throughout Manhattan, more money is being spent on construction. According to the data from the New York Building Congress, the construction spending for the year 2014 has significantly increased from the previous year. The New York Building Congress is an association that promotes the growth and success of the construction industry in New York City.

The New York Building Congress provides a unique forum to advance an industry-wide agenda, focusing on economic and infrastructure development, job creation, and professional exchange. This process requires the involvement and dedication of the contractors, architects, engineers, unions, real estate managers, developers, and owners who make up the NYC community. The forecast for construction spending in 2014 lies at $31.5 billion. The last time the spending level hit as high as $30 billion was 2010. We see a 10 percent increase in spending since 2010, and the majority of that boost is due to residential development throughout the city.

According to the data from the New York Building Congress, the costs recorded for residential spending in 2010 were at about $3 billion. The majority of the construction spending that boosted the level up to $30 billion was due to non-residential spending. In 2014, we see the costs for non-residential spending have decreased by about half the amount spent in 2010 and the residential spending doubled to about $10 billion. In just this past year, the costs spent on residential projects have increased roughly $4 billion in total.

From the $28.5 billion spent on construction in 2013, there is a notable increase in this year’s estimates, and it will remain at that level if construction projects continue to go smoothly. According to Richard T. Anderson, the president of an influential construction industry organization, if the mid-year estimates are realized, it would constitute a non-adjusted record for construction development.

The increase in construction spending is also helping the job market a substantial amount. In 2014, the spending is projected to support 122,700 jobs, up from the 120,900 jobs in construction in 2013. The spending on construction topped this year’s expected total by 17 percent. Though the total spending costs only increased 10 percent from 2010 to 2014, the employment rate in construction jobs has increased very significantly. Since the major change in spending from 2010-2014 was residential costs, it is quite possible that the residential development throughout Manhattan is not only good news for buyers, but is beneficial for workers as well.

Blog Archive


This information is not verified for authenticity or accuracy and is not guaranteed and may not reflect all real estate activity in the market. © 2021 REBNY Listing Service, Inc. All rights reserved. RLS IDX Data display by Elegran LLC. IDX information is provided exclusively for consumers’ personal, non- commercial use and that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on All data displayed on is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.