2019 Outlook for Residential Construction in New York City

The NYC construction market had an outstanding year in 2018, and the development boom is expected to continue through 2019. A gradual slowdown is expected as more housing systems reach the marketplace, but recent project filings with the NYC Department of Structures show that 2019 will likewise be an extremely active year.

Naturally, there are essential obstacles to get rid of even in the middle of a building boom. Improved safety for building and construction employees is a high priority – although 2018 was an excellent year in terms of growth, it has also been the year with the most construction mishaps in over a decade. Handling construction costs will likewise be a challenge, because brand-new tariffs on imported materials are increasing their costs.

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What Can We Anticipate From the New York City Housing Market in 2019?

New york city City will have no shortage of homes in 2019, considering that more than 28,000 new units will reach the real estate market:

A lot of new apartments are focused in luxury towers, which results in rewarding but sluggish sales. The expected timeframe to sell the new developments in Manhattan is around six years – homes with an asking cost of $4 million are taking nearly 450 days in the market.

When considering the new units submitted with the NYC Department of Buildings in 2018, development figures are even more impressive.

The following table compares the variety of new real estate systems submitted in each of the five boroughs, thinking about both 2017 and 2018:

The Amazon HQ2 corporate complex announced for building in Queens will be a motorist of development over the next decade. The development is anticipated to produce 40,000 new jobs by 2033, with typical incomes of $150,000 annually. As soon as finished the Amazon HQ2 development will have in between 6,000,000 and 8,000,000 sq.ft. of industrial floor area. The task is a joint development with state companies, and it will get rewards of over $1.7 billion.

Main Challenges for NYC Building And Construction: Safety and Product Expenses

As formerly mentioned, the main difficulties that need to be dealt with by New York City professionals are workplace safety and the rising expense of products.

Building and construction accidents are most likely as the number of projects being developed boosts, and New York City authorities are already taking actions to minimize threats. In 2018, the DOB released new policies requiring 40 hours of safety training for construction workers, and 62 hours for supervisors. The 40-hour program can be completed through among the following options:

Nevertheless, the law did not require training instantly, supplying rather a series of milestones over 12 to 28 months. The initial requirement was to finish 30 hours of training by the end of December 2018, however the deadline was encompassed June 2019.

According to the NYC DOB, the number of mishaps in New York City building and construction websites increased from 650 to 746 in between 2017 and 2018, which represents an increase of almost 15%. The variety of deaths reported for each year was 12.

New tariffs for essential construction products likewise represent a difficulty for New York City developers, and they are expected to increase task costs by 5 to 10%. Smart style decisions will gain higher value in tasks, as a way to minimize building and construction expenses. A fast project approval allows earlier product purchases, and a management reserve of a minimum of 5% is recommended for job designers.

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