December 13, 2022
NEW YORK, NY– The Real Estate Board of New York (REBNY), today released its Quarterly New Building Construction Pipeline Report for Q3 2022. This report dissects public information on new building and upcoming projects to draw historical comparisons and provide an understanding of the current state of development in New York City. During a time of economic uncertainty with rising interest rates, a worsening housing crisis and slower than expected return to office, the Q3 2022 report showed a significant decline in citywide construction activity across multiple categories, particularly with regard to rental housing construction.
According to REBNY’s new report, there were 351 new building filings in Q3 2022, which represents a 17% decrease from the previous quarter and a 28% decrease year-over-year. The volume of filings is also low compared to historical data. New building filings in Q3 2022 were 27% below the overall median and 30% lower than the quarterly average since Q1 2008.
The total proposed construction square footage in Q3 2022 also declined compared to the previous quarter and historical averages. There was a total of 6.4 million square feet in proposed construction square footage in Q3 2022, which represents a 57% decrease from the previous quarter and a 20% decrease year-over-year. It was 42% lower than the overall median and 45% lower than the quarterly average since Q1 2008.
Additionally, the report found a significant decrease in proposed rental housing construction. There were 3,346 proposed multiple dwelling units on job filings in Q3 2022, which represents a 68% decrease from the previous quarter and a 46% decrease year-over-year. This was also significantly lower than the overall median and quarterly average since Q1 2008.
A vibrant construction industry is vital for supporting a wide range of good-paying jobs and development across New York City. New York City also continues to face a severe housing shortage, which experts estimating that the City must build approximately 560,000 new units of rental housing by 2030 just to keep pace with projected growth.
“The results of this report should concern all New Yorkers, as the construction sector has a diverse impact across our economy,” said REBNY Senior Vice President of Policy Zachary Steinberg. “We face a severe housing shortage that is only getting worse and hopefully these sobering findings will encourage stakeholders to advance policies that facilitate more of the development and construction activity that our City needs.”
“If New York is to continue its comeback following the pandemic, it is imperative that we continue to invest in development projects that create housing, stimulate our economy and provide hardworking New Yorkers good paying union jobs,” said Gary LaBarbera, President of the Building and Construction Trades Council of Greater New York. “While this recent dip in construction activity, which challenges the recovery efforts our tradesmen and tradeswomen have been spearheading, is a concern, we remain committed to working with city and state leadership and other key stakeholders to address the obstacles we are currently facing and push forward development that will bolster New York’s middle class and economy.”
“As construction and development activity slows, so does important job and revenue generation for our City,” said Lou Coletti, President and CEO of the Building Trades Employers Association (BTEA). “There is significant demand for new housing and to reshape our built environment to be more resilient, efficient and equitable for the future. We must find solutions to help stabilize our economy and get much more projects that address these important issues off the ground.”
“The decline in planned multiple dwelling unit production is extremely concerning,” added Carlo A. Scissura, President and CEO of the New York Building Congress. “We must find ways to encourage the development of new housing that immediately supports good-paying construction and building jobs, as well as the infrastructure to support a growing workforce for a wide range of employers over the years to come. This includes urging state lawmakers to put in place programs that will rekindle development.”
The complete Quarterly Construction Pipeline Report can be found here.
For more information about REBNY research reports, visit go.rebny.com/Reports.
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