New York City’s construction sector has seen a remarkable resurgence in 2023, breathing new life into the city’s skyline. A significant number of new developments are underway, signaling a vibrant phase for the city’s real estate market.

Burgeoning construction projects

New York City’s Department of Buildings issued permits for 120 new buildings in the first half of 2023, up by 15% compared to the same period last year, when only 104 permits were issued. These new projects encompass a broad spectrum of real estate, ranging from residential condos and rental buildings to commercial and mixed-use structures.

Residential construction on the rise

Residential construction accounts for a significant portion of these new developments. Manhattan leads the pack with permits issued for 35 new residential buildings in the first half of 2023, a notable increase from the 30 permits issued during the same period in 2022.

Brooklyn and Queens are not far behind with 30 and 25 new residential building permits, respectively, showing growth rates of 11% and 13.6% from the first half of 2022. The Bronx and Staten Island saw permits for 20 and 10 new residential projects, respectively.

Commercial real estate: A promising rise

The commercial real estate sector is also experiencing a boom, with a total of 35 new building permits issued in H1 2023, a 16.7% increase compared to H1 2022. The majority of these new projects are concentrated in Manhattan and Brooklyn, which have 15 and 10 new commercial building projects underway, respectively.

Investment in construction

According to the New York Building Congress, the city’s construction spending is expected to reach a record $61.5 billion in 2023, a 12.3% increase from $54.8 billion in 2022. This increase is fueled by both public and private investments, signifying confidence in the city’s real estate market.