The New York Building Congress's New York City Construction Outlook 2009-2011 notes that construction spending in New York City will probably drop by 20 percent during 2009. One major reason for the drop in construction spending in the city is the decline of the residential market.
The firm expects construction spending in the city to hit $25.8 billion. Though that is 20 percent less than in 2008, Richard Anderson, president of the building congress, said it is 45 percent higher than the amount spent in 2004.
"While there is no ignoring the 20 percent decline in annual spending over the past year, there is reason to be encouraged given that 2008 was one of the most productive in New York City history," Anderson said.
A recent report shows that builders across the nation continue to not be confident in their industry. The National Association of Home Builders/Wells Fargo Housing Market Index fell to 18 in October after being at 19 in September. Numbers below 50 on the index indicate builders are not confident in the industry.
