New York - Fall In 12 Percent
According to a new report released by the New York Building Congress this week, construction spending in New York City dropped by 12 percent last year, falling to its lowest level since 2005. Despite the city's economy slowly regaining jobs, builders cut back on residential housing and commercial office buildings during 2010. Overall spending on construction in New York City in 2010 was $23.7 billion compared to $27.1 billion in 2009.
One potential reason for this drop could be the completion of two major construction projects in 2009, the new Yankee Stadium and Citi Field. Both sports arenas provided significant temporary boosts to New York's construction industry that leveled off after the projects wrapped up. Another reason is this, during the real-estate boom, the construction industry churned out 34,000 homes or apartments a year. Last year it produced only about 5,400.
There was also a significant decrease in government spending on construction projects. In 2009 the combined government spending was $15.7 billion; however in 2010 only $13.5 billion was spent. The number of construction jobs in New York City fell by 8,900 in 2010, down to a total of 111,800. This was the lowest number of construction workers active in the city since 2004.
It would have been even worse if not for a few large projects, including the World Trade Center and the new basketball arena at the Atlantic Yards in Brooklyn.
Since reaching its peak at over $31 billion in 2007, construction spending in New York City has dropped by 23 percent over the last four years. The New York Building Congress estimates that construction spending will level off at about $24 billion for 2011.
One potential reason for this drop could be the completion of two major construction projects in 2009, the new Yankee Stadium and Citi Field. Both sports arenas provided significant temporary boosts to New York's construction industry that leveled off after the projects wrapped up. Another reason is this, during the real-estate boom, the construction industry churned out 34,000 homes or apartments a year. Last year it produced only about 5,400.
There was also a significant decrease in government spending on construction projects. In 2009 the combined government spending was $15.7 billion; however in 2010 only $13.5 billion was spent. The number of construction jobs in New York City fell by 8,900 in 2010, down to a total of 111,800. This was the lowest number of construction workers active in the city since 2004.
It would have been even worse if not for a few large projects, including the World Trade Center and the new basketball arena at the Atlantic Yards in Brooklyn.
Since reaching its peak at over $31 billion in 2007, construction spending in New York City has dropped by 23 percent over the last four years. The New York Building Congress estimates that construction spending will level off at about $24 billion for 2011.
