As of November 29, 2009, work had stopped on 515 construction sites throughout New York City. The borough of Brooklyn with 46 percent of this total, has 237 stalled projects. Williamsburg, East Williamsburg, Greenpoint and North Side-South Side account for 30 percent of the 237 stalled projects. In Queens, there are 140 stalled projects, and Manhattan has a total of 80 projects which remain unfinished. Staten Island has witnessed more than double an increase in its stalled projects to 34, and the borough of the Bronx has remained steady with a slight increase from 22 to 24 stalled projects.
Nonetheless, the value of nonresidential construction starts, which includes hotels, schools, offices, hospitals and other institutional buildings averaged $784 million per month for the third quarter of 2009. This is an increase of $364 million per month from the first quarter of 2009. The two largest sectors within the nonresidential category, schools, libraries and labs, accounted for 35 percent of the construction starts. Offices and bank buildings accounted for 28 percent.
According to Richard T. Anderson of the New York Building Congress: “The City should consider further incentives to encourage developers to re-start stalled projects…new tax credits, zoning modifications and related steps to help get development back on track.”
Moreover, developers’ ability to obtain necessary financing to complete projects is critical to the resumption of private sector development.
[Data Sources: NYC Construction Outlook, December 10, 2009 and November 24, 2009]
