Take a peak out your window or step outside your door. Is there ongoing construction somewhere in your line of vision? Chances are good the answer is a resounding yes.
Actually, you probably don't even have to look out your window. Just listen to the constant drilling outside your window.
We as New Yorkers have some pretty excellent selective hearing, but when you finally hear it, it's impossible to block it out again.
According to The Real Deal, new construction in New York City rose to an incredible $40.9 billion in 2015, partially due to the construction of major projects like Hudson Yards.
So just how massive was the jump from 2014 to 2015? That would be a quite staggering 53% jump in spending on construction.
All of these projects will apparently take up 83 million square feet of floor space in NYC, though 58 million square feet will be designated to residential buildings.
That's a 62% increase in residential construction stats from 2014 to 2015, resulting $19.5 billion.
However, New York Building Congress President, Richard Anderson, questioned how much longer the housing boom could continue, particularly due to the slowdown the luxury market.
"Perhaps never before in New York City has so much new housing been in the pipeline at one time. The present question is how long we can sustain this sort of pace, especially in the absence of the 421a subsidy program and with increasing reports of a softening market," he said.
Considering reports of nearly 2.82% of Manhattan's apartments remaining vacant, we can't help but question whether or not the housing boom has finally topped out.
Non-residential construction grew a whopping 65% from 2015 to 2014, resulting an $18 billion price tag. However, construction in the public works sector dropped, with infrastructure projects lowering from $3.8 billion in 2014 to $3.4 billion in 2015.
Whether or not these new construction projects will be a benefit to the city remains to be seen, but we're hopeful that the slowdown in demand for ultra-luxury residential spaces means that rent prices will soon be decreasing to an affordable rate again... or as affordable as they can be in NYC.[via The Real Deal] [Feature Image Courtesy The San Diego Union Tribune]