The New York Building Congress (NYBC) forecasts a moderate increase in residential construction spending within New York City for 2023, despite a notable decrease in new residential building permits. According to the NYBC’s report, an estimated $26.4 billion will be allocated towards residential construction projects, with renovations and conversions comprising the majority of this expenditure. Only 23% of current residential development is dedicated to ground-up apartment buildings and homes, while renovations and additions make up the remaining 49%.
The decline in new residential development can be attributed to factors such as expired tax exemptions and higher interest rates. The NYBC recommends promoting transit-oriented development initiatives and lifting city-specific caps on new floor area as potential solutions. In contrast, nonresidential projects are expected to see a significant rise in spending during 2023, accounting for approximately 42% of all construction expenditures.
Furthermore, government-funded construction is also projected to reach $22 billion with allocations towards schools infrastructure improvements , city office buildings , transit systems upgrades ,and road maintenance . These developments indicate positive growth opportunities within both the commercial real estate sector as well as public infrastructure investments throughout New York City.
