Wednesday, October 15, 2008

Building will bottom out by 2010

New York City’s long-running building boom will peak this year, before new office and residential projects peter out in the coming years and the number of construction jobs falls by almost 30,000 by 2010, according to a report released on Tuesday by the New York Building Congress.

End Seen to New York Building Boom

The building congress, a trade group for construction and real estate companies, estimates that construction spending on new housing, office towers, stadiums, subway tunnels and schools will decline slightly in 2009 before falling to $26.2 billion in 2010, from $33.8 billion this year. But even that forecast may be a bit optimistic.

The report noted that construction had already begun on “the majority of the 15 office towers factored into the 2009 and 2010 estimates.” But at least one-third of those projects are already in doubt, given the flagging economy, turmoil on Wall Street and the virtual disappearance of construction financing for new projects.


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In 2010, builders are expected to create only 18,500 new residential units in the five boroughs. That's nearly a 50% drop over two years.

Spending on non-residential construction will continue to rise to more than $11.5 billion next year, but will plummet to $7.1 billion in 2010, the group predicted.

Another area affected by Wall Street's woes is government projects, which account for more than half of all construction spending in the city.

Both the city and state have begun imposing severe cost-cutting measures in the face of evaporating Wall Street revenues.

The report found that those cuts will have a delayed effect on government-funded projects, with spending rising to $17.4 billion in 2009 and then dropping to $14.4 billion the following year.


Building boom to go bust in a year, says industry group study

7 comments:

Anonymous said...

Not if the mayor gets his way.

You put him back in and another year or two they will be back.

Kick him out, and it will take 20 years to build another head of steam.

Anonymous said...

yeah,we're living in an area that resembles the south bronx at the height of the abandoned buildings fiasco.
Uncompleted renovations,open houses,houses with stop work orders apparently now without their money to continue,some being re-gutted/cannabalized,etc.
Multiple calls to buildings going nowhere and all we would like DONE is that these properties are either padlocked or boarded up to keep folKK out.
Why are our taxes paying for these city agencies that refuse to enforce their laws ?
Padlocking/boarding them up would stop the vandalism,squatters and removal of copper pipes,pvc,etc.
they don't care,so when something happens--we will sue the appropriate agencies.

Anonymous said...

What happened to all that
optimistic "NYC 2030" bullshit Mayor Bumberg?

We're NOT going to get
a million more residents.

We'll probably LOSE at least half of that figure by then!

Keep on f-----g the middle class
and NYC will go from boom town to bust-burg! (It's already started).

italian girl said...

Anonymous said...
"We're NOT going to get
a million more residents.

We'll probably LOSE at least half of that figure by then!

Keep on f-----g the middle class
and NYC will go from boom town to bust-burg! (It's already started)."

Absolutely! I don't think people fully realize what's about to happen especially here in NYC. The financial sector is going to bleed jobs like never before. All those folks living in high priced condos/houses will be looking to sell. To who? Not many out there buying in a soft market. Would you? The less jobs in Manhattan, the less demand for housing, prices fall. All this overdevelopment that Bloomie encouraged is going to blow up in his face. And we'll suffer the consequences.

Anonymous said...

All this overdevelopment that Bloomie encouraged is going to blow up in his face. And we'll suffer the consequences.
----

Would have gone nowhere if you local pols and community boards went along to sell you down the river. Remember that on election day.

Oh yes, our friends in preservation. 4 boros, the the alphabet soup gang, hdc, mas, etc

Their silence and ineptness created the perfect climate for this.

We will not forget!

Anonymous said...

what is hdc supposed to do?

Anonymous said...

If our local communities weren't gutted of their deserving landmark worthy sites (which make for neighborhood stability) maybe some old time hard workers would have hung in instead of moving out of the encroaching crap that followed into Westchester and Putnam counties etc.

So if the preservation orgs showed some BALLS instead of biting their nails worrying about losing their funding if they spoke out
we'd have a roster of landmarks and more stable nabes that the "developers" couldn't strip mine for their personal profit!

I cite Flushing as a prime example
of a shit heap with few landmarks despite it being one of the most historic areas of NYC.

Thanks CB#7, QHS, LPC, the mayors,
and yes....even HDC!