New York State Report Paints Rosy Picture Of Health Of Regional Economy

A recent New York State Department of Labor report showed significant job growth in 8 of the 13 major industries on Long Island, including healthcare, manufacturing, professional and business services, and construction. This is certainly welcome news, as the region continues to grow high-paying jobs to skilled workers, with salaries essential to live here, where the cost of living is high and continues to climb.

The report stated that "construction activity is booming on Long Island." Many in the industry would tend to disagree, but the report does state that much of this growth is due to the Federal Infrastructure Investment and Jobs Act, which has delivered billions of dollars across the United States to deal with our aging infrastructure. The report also stated that record high home prices, combined with a scarce and aging housing stock have led to a significant increase in home renovation projects. As buyers are being outbid on home after home, many have taken what they can find, updating those homes to fit their needs.

At the same time, high interest rates and wary banks have concurrently hampered private construction projects. These factors, coupled with the continued reluctance of some local municipalities to approve essential projects, can impact economic growth overall. While the report cites that "dozens of transit-oriented mixed-use developments and multi-family housing projects are underway," the pipeline is very small compared to what we all know the region needs: 100,000 additional housing units.

All things considered, this report is good news, and an important step in the continued recovery of deal flow and activity in the real estate and construction industries.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.