NYC construction costs climbing

TRD New York /
Mar.March 28, 2011 06:02 PM

Construction costs are on the rise again in 2011, according to a series of surveys analyzed by the New York Building Congress. The building cost index published by the Engineering News-Record trade magazine, for example, found that after a 0.9 percent decline in 2009, construction costs in New York City soared 2.68 percent in 2010, and 2.86 percent in the first quarter of 2011. While these rates of increase are consistent with the national average, New York City far outpaces the nation in construction worker compensation.

In 14 construction occupations analyzed by the Building Congress, city workers were determined to be the top earners in the nation in 13 occupations, and the second biggest earners in the one remaining category. Plumbers in the city, for instance, earn $84.37 per hour — $16 more per hour than the second best-compensated plumbers in Boston.

“The higher cost of living certainly has an impact on compensation for workers across the board,” said Building Congress President Richard Anderson. “Having said that, however, the higher construction cost structure in New York City is bordering on unsustainable. While we must look carefully at all aspects of construction costs, it is hard to ignore the wide disparity in labor rates, which account for 50 to 60 percent of building expenses.”

Related Articles

Melania La Rocca

Buildings commissioner talks priorities in final de Blasio years

A rendering of  280 Meeker Avenue CW Realty Management CEO Cheskie Weisz (CW Realty Management)

CW Realty to bring mixed-use project to troubled Williamsburg site

 561 Greenwich Street (Credit: Google Maps)

Trinity Church to construct another Hudson Square office tower

Jerome Powell and New York City construction in October 2019 (Credit: Getty Images)

The Fed lowers rates, and once again real estate is loving it

The complaint claims that union officials discouraged him from investigating certain cases (Credit: iStock)

Whistleblower lawsuit accuses carpenters’ union of brushing off claims of corruption, fraud

From left: Katerra COO Paal Kibsgaard, Softbank CEO Masayoshi Son, and Katerra CEO Michael Marks (Credit: Katerra, Getty Images, and iStock)

SoftBank-backed construction startup Katerra acquires two more firms

Hurricane Dorian spared South Florida but will still cost developers and contractors

Hurricane Dorian spared South Florida but will still cost developers and contractors

A satellite image of Hurricane Dorian (Credit: Getty Images, iStock)

As Hurricane Dorian barrels toward South Florida, developers and builders prepare