Press Release: New York Building Congress Hosts Andy Byford at October Construction Industry Breakfast, Releases 2025-2027 NYC Construction Outlook
Published on Oct 22, 2025
Office Market Resurgence Drives Surge as New York Construction Spending To Hit $219 Billion Through 2027: New York Building Congress Report
Latest report finds office development soars, residential spending jumps to 43% from 24% of construction spending as New York keeps growing, showing resilience in face of economic uncertainties
Amtrak’s Andy Byford joins Building Congress’ Construction Industry Breakfast to discuss future of regional transit infrastructure as part of Penn Station’s transformation
New York, N.Y. (October 22, 2025) – New York City construction spending will reach $219 billion from 2025 through 2027, fueled by a surge in residential spending — including a growing level of office-to-residential conversions — and a near-doubling of office development spending, according to a report released Wednesday by the New York Building Congress.
The report projects nearly 19,000 new housing units will be permitted in 2025 — double 2023 levels, although down from 2024 — with spending on residential construction now representing 43% of all construction spending, up from 24% in 2024. The New York Building Congress released the report following its most recent Construction Industry Breakfast, where Andy Byford, Special Advisor to the Amtrak Board of Directors, provided the keynote address.
“New York’s construction industry continues to show that progress never stops here,” said Carlo A. Scissura, President & CEO of the New York Building Congress. “Even with economic headwinds, our builders, engineers, and labor force are driving growth, creating jobs, and shaping the future of our city. This momentum is what keeps New York moving forward.”
The breakfast brought together leaders across construction, design, engineering and public service to celebrate the strength and innovation of New York’s building community. Byford spoke about the planned transformation of Penn Station and the future of regional transit infrastructure.
“Amtrak is ready and has the experience and expertise to deliver a world-class terminal to New York City – and I thank the New York Building Congress for having me at their Construction Industry Breakfast to share this message to important stakeholders,” said Amtrak Special Advisor for the New York Penn Station Transformation Project Andy Byford. “That is why we are moving forward with a comprehensive renovation that would transform Penn Station into a modern, iconic, and world-class destination enjoyed by neighborhood residents, tourists, and travelers.”
In a surprise finding given widespread remote work, the report notes that office construction spending is projected to nearly double from 2024 levels to $9.5 billion in 2025, suggesting continued confidence in Manhattan’s commercial real estate market. Other key statistics from the report include:
- Total construction spending from 2025 to 2027 will reach $219 billion (or $230 billion in nominal dollars).
- Annual spending will reach $74 billion in 2025, dipping slightly to $69 billion in 2026, then rebounding to $75 billion in 2027.
- Residential construction represents 43% of all 2025 construction spending, up from 24% in 2024, and nearly 19,000 new housing units are expected to be permitted in 2025.
- Public-sector spending will total $23.7 billion in 2025, driven by the MTA ($7.3B), NYC ($13B), and Port Authority ($1.5B).
- Construction employment will hold steady at 140,000 private-sector jobs through 2027.
- Despite high interest rates and tariffs, New York City construction remains resilient, accounting for 3% of all U.S. construction spending.
A full copy of the 2025–2027 Construction Outlook Report is available here.
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About The New York Building Congress
The New York Building Congress, a broad-based membership association celebrating its 104th year, is committed to promoting the growth and success of the construction industry in New York City and its environs. Learn more about the New York Building Congress at www.buildingcongress.com.
