NEW YORK BUILDING CONGRESS
“Work Started on $3.9 Billion Worth of Projects in Third Quarter of 2009”
“A New York Building Congress analysis of McGraw-Hill Construction Dodge construction starts found that projects worth $3.9 billion started from July through September of 2009.
The numbers are in line with the second quarter of the year, which saw project starts valued at $4.1 billion, and more than twice the value of construction starts the first three months of the year ($1.8 billion). The total, however, falls well below the third quarter of 2008 ($5.3 billion), which roughly coincides with the City’s financial tailspin.
The data encompasses all project starts, including new construction as well as alterations and renovations to existing structures, and reflects the estimated value of each initiated project through the entire period of construction. The third quarter has been the strongest of the year for residential construction starts. Construction began on a total of 907 dwelling units over the past three months, compared to 506 in the second quarter and 859 in the first quarter of 2009. The current rate, however, is just a fraction of the New York City’s third quarter 2008 residential construction output of 3,206 units.
Residential construction starts averaged $193 million per month in value for the third quarter of 2009, up from $137 million in the second quarter. This is well short of the monthly average of $477 million in construction starts during the third quarter of 2008.
The value of nonresidential construction starts, which includes hotels, schools, offices, hospitals and other institutional building, averaged $784 million per month for the third quarter of 2009. That is up from $364 million per month in the first quarter of this year but down slightly from the $829 million achieved per month in the second quarter and the $811 million per month for the third quarter of 2008.
The two biggest sectors within the nonresidential category were schools, libraries and labs, which accounted for 35 percent of construction starts, and offices and bank buildings, which accounted for 28 percent. In both cases, the project starts were split fairly evenly between new buildings and alterations/renovations to existing structures.
The value of non-building sector starts, which measures public sector projects, such as roads, bridges, water systems and other infrastructure, averaged $314 million per month in the third quarter, down from $414 million per month in the second quarter, but significantly ahead of the first quarter of the year, when just $76 million in new starts were reported. Non-building starts totaled $473 million per month during the third quarter of 2008.
“Overall, construction starts remain significantly below the standard set in 2008, prior to the massive economic upheaval,” said New York Building Congress President Richard T. Anderson. “And judging from these numbers, as well as the overall trends in New York City employment, one must assume that it will be a while before construction activity returns to the levels experienced at the height of the building boom.”
Anderson continued, “Still, it is encouraging to see further evidence that construction activity in general has stabilized considerably after an abysmal start to the year. The key moving forward will be the ability of government to continue spending on public infrastructure and the continued easing of credit markets to allow for the resumption of private sector development.”
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“The New York Building Congress…is committed to promoting the growth and success of the construction industry in New York City and its environs. The Building Congress provides a unique forum to advance an industry-wide agenda focusing on economic and infrastructure investment, job creation and professional exchange. These goals require the dedicated involvement and cooperation of the contractors, architects, engineers, unions, real estate managers, developers and owners who comprise the building community.”
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