Surprise! NYC remains most expensive place to build in the world: report

New York /
May.May 15, 2018 05:02 PM

Though construction spending cooled slightly last year, New York City remains the most expensive place to build in the world with an average cost of $362 per square foot.

That’s a 3.5 percent year-over-year increase, and another 3.5 percent hike is expected in 2018, according to Turner & Townsend’s 2018 International Construction Market Survey.

San Francisco closely followed New York with an average cost of $347 per square foot, and Hong Kong ranked third with $344 per square foot.

In New York, high-rise office buildings were among the priciest to build at an average $565 per square foot. High-rise apartment buildings cost an average $302 per square foot.

Construction spending fell 12 percent from 2016’s record high, totaling $45.3 billion last year. Meanwhile, shortages in skilled labor continued to drive up costs.

“The industry skills shortage is one of the pivotal drivers of rising costs, felt at both a local and global levels,” John Robbins, Turner & Townsend’s managing director in the U.S. said in a statement. “We need to seize current market opportunity to attract new young talent back into skilled trades, incentivize the supply chain with more innovative and partnering contracting models, and invest in digital tools and modern techniques that will maximize productivity.”

New York had the second-highest average hourly-rate with $98.30, though the report only calculated the rates for union labor, which tends to be higher than that of nonunion workers. The highest paid worker included in the report was “site foreman” with an average hourly rate of $145. Workers in Zurich had the highest average hourly rate at $104 per hour.


Related Articles

arrow_forward_ios
From left: Jeff Goldberg, CEO of Fairstead, and Will Blodgett, Founder of Tredway (Getty Images, Fairstead)
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
Fairstead fires back, alleges Blodgett threatened to go “torched earth”
From left: Extell's Gary Barnett and JDS Development’s Michael Stern along with One Manhattan Square, The Narrows, and 111 West 57th Street (Extell, JDS Development, Getty Images, The Narrows Condo)
New development sales plummeted 30% in July
New development sales plummeted 30% in July
Queens official Donovan Richards, Larry Silverstein and rendering of Innovation QNS (Queens Borough President, Innovation QNS, Getty)
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Queens boro prez turns on industry, rejects Silverstein’s $2B project
Tavros Capital’s Nicholas Silvers and Charney Companies’ Sam Charney in front of 24-05 thru 24-19 Jackson Avenue in Long Island City (Getty Images, Tavros Capital, Charney Companies, Google Maps)
Tavros, Charney plan 55-story rental on long-stalled site
Tavros, Charney plan 55-story rental on long-stalled site
3100-3124 Atlantic Avenue in East New York, Brooklyn (Google Maps, Getty)
Locals fear homeless shelter king will gentrify East New York
Locals fear homeless shelter king will gentrify East New York
Adam Piore with the Time Warner Center, 15 Central Park West, One57, Sheffield57, and Hudson Yards (Getty, CityRealty, Pablo Costa Tirado, CC BY-SA 3.0 via Wikimedia Commons)
“New Kings of New York” author on 5 projects that reshaped NYC real estate
“New Kings of New York” author on 5 projects that reshaped NYC real estate
Durst Organization's Douglas Durst, Jamestown's Michael Phillips and One Times Square (Durst Organization, Jamestown, Getty, Bernt Rostad from Oslo, Norway edited by Yarl/CC BY 2.0/via Wikimedia Commons)
Durst sues Jamestown over Times Square scaffolding
Durst sues Jamestown over Times Square scaffolding
Five Pointe Real Estate's Corey Gluckstal with 7 Beach Lane (Five Pointe Real Estate, Douglas Elliman)
Westhampton Beach inn to reopen as luxury hotel
Westhampton Beach inn to reopen as luxury hotel
arrow_forward_ios

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

Loading...