By: Hadassa Kalatizadeh
A new analysis of City data shows that construction activity has dwindled significantly, and policymakers must move swiftly to facilitate the city’s economic recovery. As reported by Real Estate Weekly, the number of new construction filings in NYC for the year 2020 is now at lows last seen a decade ago, after the Great Recession.
In the first three quarters of 2020, new building filings in the city dropped 22 percent, compared to the same time frame last year, as per REBNY’s New Building Construction Pipeline Report. That number was 1,187, and dangerously close to the 2010 level. Fueled with news of the report, leaders of the Real Estate Board of New York (REBNY), Building and Construction Trades Council (BCTC), Building Trades Employers Association (BTEA) and New York Building Congress took the initiative to ask government officials to step up with aggressive action which could create more construction and add jobs.
“This 10-year low point for new construction activity calls for an all-hands-on-deck response by elected officials and a laser focus on policies that will generate jobs and growth without setting back crucial recovery efforts,” said REBNY President James Whelan. “The industry will keep working collaboratively with labor leaders and other stakeholders to ensure construction can continue to bounce back and help to provide a brighter future for our City and its workers.”
As per REW-online, Industry and labor leaders proposed that the government: focus on expediting the completion of existing large scale developments; get to work on a master plan to improve Transportation Infrastructure; convert Class B and C offices space into residential space; expand the Industrial and Commercial Abatement (ICAP) program to spur new construction in the life sciences sector for labs and research use; allow builders to pay an extra permit fee to expedite the DOB’s service; and make an exception to NYC’s Multiple Dwelling Law or floor area ratio (FAR) cap. The proposals hope to open new opportunities for development, job creation and the addition of affordable housing.
“Investment in construction and large-scale infrastructure projects are what drive a robust economic recovery,” said BCTC President Gary LaBarbera. “These projects create thousands of jobs that lead to family-sustaining careers with benefits, and that’s exactly what’s needed to generate the economic activity and mobility that will help New York City turn the corner on this economic crisis.”
“It has been proven repeatedly that investing in infrastructure and construction in times of crisis can uplift our city and state, jumpstart the economy and create jobs,” said New York Building Congress President & CEO Carlo Scissura.
