McGraw-Hill Construction, part of The McGraw-Hill Companies, has released the 2009 New York Metro Construction Outlook: Mid-Summer Update. “The recession has combined with the credit freeze to create an unusually difficult environment for construction, both in the New York metro area and across the nation as a whole,” says the report. Total construction starts for the New York metro area, which includes the New York City boroughs, as well as other counties in New York, New Jersey and Pennsylvania, will be down 34 percent to $22.1 billion.
Highlights of the report conclude:
► Commercial and industrial construction will drop 60 percent to $3.3 billion, due partly to last year’s robust activity but also this year’s lack of demand and lack of credit.
► A 12 percent decline in institutional construction is expected in 2009, bringing starts down to $5.8 billion.
► The New York metro's largest non-residential construction market in 2009 will be education.
► Construction starts will fall 13 percent to $3.3 billion, but cuts would have been much deeper if not for the federal stimulus package.
► Following a five percent gain in 2008, non-building construction will retrench 17 percent in 2009 to $8.1 billion.
► Fueled by a weak and regionally important multifamily sector, the housing decline will continue, dropping 46 percent to $5.0 billion in 2009.
In addition to the 2009 forecast, the report provides an in-depth analysis of the impact of stimulus funding on the metro area and presents historical construction data since 2003 for more than 10 major construction categories, including stores and shopping centers, offices, hotels, manufacturing buildings, educational buildings, healthcare, public works, utilities, and multifamily and single family housing.
To download a copy of the report, click here.