Snapshots

NYC construction starts decelerate following prolonged supply expansion in a cost-burdened market

2019 saw the fewest new building construction permit filings since 2014, with 18,327 total new building permits filed – 13% below the city’s peak filings in 2017.

January 22, 2020
  • 2019 saw the fewest new building construction permit filings since 2014, with 18,327 total new building permits filed – 13% below the city’s peak filings in 2017.
  • Hard and soft construction costs elevated significantly from 2015-2018, corresponding to heightened development activity in the five boroughs. However, starts have fallen sharply in both of the last two years, as oversupply concerns - especially in the residential condo and hospitality sectors - combined with cost burdens to drive developers to reconsider plans. 
  • The increased rate of growth in construction costs could be softened by the wide availability of labor and materials over the coming quarters.

Source: JLL Research, RSMeans, ENR

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