New York construction spending is forecast to reach $30.7 billion in 2012, according to the New York Building Congress.

The figure is 9% up from last year, with $12.6 billion to be spent on non-residential building projects. Despite this, 2013 is looking to be a relatively flat year, with a predicted construction total of $30.2 billion, the industry group said in their annual report.

This year and next year's outlook has improved from last year, where 2012 was to experience level construction spending, and 2013 was to encounter a sharp fall. "The city's construction industry has experienced a swift and rather remarkable resurgence," said the group's president, Richard T. Anderson.

New York Construction Forecast

Large projects drove much of the upsurge, including construction at the World Trade Center, The Barclays Center and the renovation of Madison Square Garden.

The record $12.6 billion, up from last year's $10.5 billion, will be spent on non-residential buildings include spending for office space, sports venues, hotels and institutional developments.

The residential sector is forecast to increase to $3.2 billion from $2.9 billion last year, and is expected to keep on rising well into 2014, to $5.3 billion.

Otherwise, 2014 looks to be fairly flat on spending, according to the group. Public infrastructure such as mass transit, public schools, bridges and roads are predicted to grow a little this year, to $14.9 billion from last year's $14.6 billion.

"We are concerned about the prospect of declining government investment beyond the forecast period," Anderson said. The city is planning to halve its construction and design commitments within the next three years. Anderson noted that the city's largest government spender, the Metropolitan Transportation Authority, will commence their next capital plan in 2015.

"Much of the funding for the MTA's current five-year plan was achieved through increased borrowing. It is unlikely that current levels of investment can be achieved without new sources of dedicated revenue," Anderson said.

The MTA is set to invest around $3.7 billion a year in New York's transit system between now and 2014. These spending levels are below their $5.1 billion peak in 2008.

Image Copyright Shmuel Spiegelman - Courtesy Wikipedia Commons