New York, NY

The New York City economy has rebounded significantly from the depths of the covid recession.

Supply chain issues and hyper escalation on materials pricing finally caught up with New York’s construction market early this year, as increases were passed from contractor to client after they had filled their backlog of work previously depleted by the covid crisis.  New York City construction activity has continued to remain strong into the third and fourth quarters of 2022 on the back of a saturated interiors market and is expected to remain steady at these high levels for at least the next quarter, when backlogs begin to recede, in line with debate from economists over whether the U.S. is heading towards a recession. The tourism sector has bounced back as well, although not fully to 2019 levels. The housing sector is expected to see renewed attention even as overall volume declines. This will likely be felt more strongly in some boroughs than others thanks to the bifurcated nature of working from home.  

Meanwhile, New York is also expected to see a major influx of federal funding toward infrastructure projects because of the prior Bipartisan Infrastructure Law. Construction and real estate comprise 20% of New York City’s GDP while providing 10% of jobs and 5% of wages. The largest proposed projects in each borough in the second quarter of 2022 include a 986,360-square-foot warehouse in the Bronx, a 749,356-square-foot mixed-use building in Brooklyn, and a 667,302-square-foot residential building in Manhattan. 

* Other structures include religious buildings, amusement, government communications, and public recreation projects.