NYC construction costs climbing

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

arrow_forward_ios
Warehousing, construction notch November job gains
Warehousing, construction notch November job gains
Warehousing, construction notch November job gains
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Virtual real estate speculators notch another record deal
Slate Property Group principal Martin Nussbaum and 210 Clarkson Avenue (Slate, RIPCO)
K2 Real Estate nabs $68M to kick off Prospect-Lefferts Gardens resi project
K2 Real Estate nabs $68M to kick off Prospect-Lefferts Gardens resi project
Small developments dominate as new building filings return to pre-pandemic levels
Small developments dominate as new building filings return to pre-pandemic levels
Small developments dominate as new building filings return to pre-pandemic levels
(iStock)
Manufactured home construction projected to hit 15-year high
Manufactured home construction projected to hit 15-year high
(iStock)
Backlog blues: Permits rise, housing starts slow in October
Backlog blues: Permits rise, housing starts slow in October
Industrial real estate saw highest net absorption since 2008 and the highest quarterly asking rents on record. (iStock/Illustration by Kevin Rebong for The Real Deal)
A record-shattering quarter for industrial real estate
A record-shattering quarter for industrial real estate
Block Renovation co-founder Koda Wang (Block Renovation, LinkedIn)
Home improvement startup Block Renovation taking platform national
Home improvement startup Block Renovation taking platform national
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...