New York Building Congress forecasts $10 billion jump in NYC construction spending to nearly $80 billion in 2026
Manhattan, NY The New York Building Congress released its 2026–2028 New York City Construction Outlook Report, projecting $79.8 billion in construction spending by the end of 2026 — a $10 billion year-over-year increase, adjusted for inflation.
The report forecasts $242.9 billion in inflation-adjusted construction spending over the next three years, a 16% increase over the previous three-year period, driven by a surge in residential development, major commercial projects, and continued infrastructure investment.
“If there were any doubts about New York’s appetite for building, these numbers should put them to rest,” said Carlo Scissura, Esq., president and CEO of the New York Building Congress. “We’re seeing tremendous momentum, with housing production accelerating and major projects reshaping neighborhoods across the five boroughs. But we can’t take this growth for granted! To keep New York building, we need to cut through red tape, invest in our workforce, and secure the federal funding our infrastructure depends on.”
The findings point to a strong outlook for New York City’s construction industry despite persistent challenges from high interest rates, rising material costs, and uncertainty surrounding federal infrastructure funding. Housing construction is emerging as a particularly significant driver of growth, with building permits expected to be issued for nearly 31,500 new housing units in 2026 — compared to 19,724 in 2025 and more than 50% above the annual average from 2020 to 2025. Large-scale rezonings, City of Yes for Housing Opportunity, and office-to-residential conversions are helping accelerate housing production and expand the city’s development pipeline.
Key findings include:
• Construction spending is expected to reach $79.8 billion in 2026, an inflation-adjusted increase of $10 billion from 2025. Spending is projected to grow to $81 billion in 2027 and $82 billion in 2028, totaling $242.9 billion over three years.
• Building permits are projected for 31,442 new housing units in 2026, compared to 19,724 in 2025. That figure is expected to climb to 32,803 units in 2027 and 34,904 in 2028, supported by rezonings, office-to-residential conversions and zoning reforms.
• Residential construction spending is expected to reach nearly $27 billion in 2026, accounting for 34% of all construction spending, up from 30% in 2025. Inflation-adjusted residential spending for 2026–2028 is projected to outpace the previous three-year period by 64%, an increase of about $32 billion.
• Private construction employment is expected to reach 142,855 jobs in 2026, an increase of more than 2,700 jobs from 2025, with continued modest growth projected through 2028.
• New construction floorspace is projected to exceed 57 million gross square feet in 2026, up from approximately 37 million in 2025. Residential development is expected to account for roughly 72% of new floorspace.
• Non-residential construction spending is expected to reach $29.1 billion in 2026, supported by major office developments, educational facilities and entertainment projects. Three licensed casino developments alone are expected to represent approximately $17.6 billion in planned investment.
• Government construction spending is projected to total $23.8 billion in 2026, with major investments expected in transportation infrastructure, public facilities and the MTA’s 2025–2029 Capital Plan. The MTA is expected to invest approximately $27 billion within the five boroughs from 2026 through 2028.
The New York Building Congress also outlines its recommendations to sustain the industry’s momentum, including expanding housing development incentives, streamlining permitting and project approvals, advancing transit-oriented rezonings, investing in workforce development and securing federal transportation funding.
The 2026–2028 New York City Construction Outlook Report is the 26th installment in the Building Congress’s annual series, published in partnership with the New York Building Foundation.
The New York Building Congress, a broad-based membership association celebrating its 105th year, is committed to promoting the growth and success of the construction industry in New York City and its environs.