A study on new construction permits filed in New York in the first eleven months of 2010 shows a 28% drop compared to the same period of last year. This represents the fifth year of decline in new building permits issued by the City, which total only 5,924 for the first eleven months of 2010, down by 10,000 (-62.8%) over the same period in 2005.
The fall is even sharper if only first-time filings for new building permits are taken into consideration. There were 1,357 of these filed in the first eleven months of 2010, down 7.6% over same period in 2009, and down 77.9% over same period in 2005.
The city-wide trend was consistent over all the five boroughs, except Manhattan, which reached its 6-year peak in 2008, followed however by a steep decline in both 2009 and 2010.
In 2010, Queens accounted for 34.5% of all and over 47% of first-time filed new building permits in New York City. Most of these were filed in the north-eastern part of the borough, which comprises the community districts 7 and 11. By comparison, Manhattan accounted for only 2.7% (37 in total) of first-time filed new building permits in New York.
Sales of vacant land in New York, another indicator of the real estate construction market, have rebounded from last year, up 12.7%, but are still way down from the figures we saw before the start of the housing crisis. In total, 539 vacant lots were sold in the first eleven months of the year, down 75% from the same period in 2005.
Although vacant land sales do not capture the entire market for new development land, permits filed for demolition of existing structures depict a similar image. The number of permits filed for demolition in the first eleven months of the year was down 26.7% compared to the same period last year and down 71% over the same period in 2005.