When it comes to the New York City real estate market, there is always something to keep an eye on. From residential developments to commercial construction, it is easy to see why the Big Apple is known as the city that never sleeps.
According to an analysis by the New York Building Congress, overall construction spending in the city increased 6 percent in 2013 to $29.3 billion. Not only was a lot of money spent on construction, but this lead to an uptick in employment within the industry. Residential construction spending hit its stride once again in 2013, reaching its highest level in many years.
During 2013, residential development took off with the construction of 18,095 units. This worked out to an increase of 64 percent when compared to 2012. As far as residential construction is concerned, this was the highest since 2008.
The New York Building Congress president is excited at this news. He said, "In fact, construction spending in the residential sector was greater last year than it was during the height of the building boom – even after factoring for inflation. The one note of caution, however, is that we are producing less new square footage and far fewer new units of housing today than we did between 2005 and 2008, a period that saw more than 30,000 new units created annually."
In 2013, residential development once again picked up, despite the fact that it was lacking during the recession. The New York Building Congress, among others, are hoping for more of the same in 2014. However, it's important to remember that any real estate transaction can be fraught with pitfalls. The knowledge and advice of an experienced real estate attorney can help insure your interests are protected before the dotted line is signed.
Source: Real Estate Weekly, "New York construction spending tops $29M" No author given, Apr. 14, 2014