All industries experience cycles of expansion and contraction and this is particularly true of the insurance industry. Compared to other states New York remains the one geographic exception to this dynamic and is the only area where a true hard market persists.
A recent analysis by The New York Building Congress found that New York City (Bronx, Brooklyn, Manhattan, Queens, Staten Island) is the priciest US city to build-in. Some estimates put the cost of insuring construction projects in NYC as much as 10 times higher than other major U.S. cities.
Over the last 5 years the NYC Construction industry has achieved higher positive growth when compared to any other city in the United States. Overall, NYC's activity accounted for 16% of the development in the nation.
The NYC construction industry had an excellent year in 2018, and the development boom is expected to continue through 2019. The construction industry will continue to rebound following a slow growth period between late 2016 to the end of 2017. As 2018 construction activity increased by nearly 50% in the first half of 2018 even as the market nationally slowed down. According to a report by Dodge Data & Analytics, they found that between 2017 and 2018 the value of construction increased from $11.19 billion to $16.14 billion. This growth is mainly attributed to an 83% jump in commercial development.