New York, a market that can be counted on to do sizeable multi-billion dollar deals every season, reports that they’re facing a significant downturn in mostly non-residential construction.
The New York Building Congress estimates spending will be at $55 billion this year, which, while sounding big, is $16 billion less than 2019’s $65.9 billion. This goes beyond the group’s earlier estimate that the spending would land somewhere around $62 billion.
And the spending is going to have a slow comeback. The group estimates that by 2022 the expenditure will still be steady around $56 billion. The drop can be attributed to the overall economic stagnation and the slowing in non-residential building projects, including offices and retail, on which New York gets its bread and butter.
To help offset a small amount of the drop, government spending is expected to increase. The Building Congress forecasts will be at $21.1 billion in 2020, up from $19.7 in 2019, and projected $23.1 in 2021.
All is not rosy. The Metropolitan Transit Authority has said that it will have to cannibalize its capital program unless it doesn’t receive a $12 billion federal government bailout. The Port Authority is seeking an additional $3 billion.