A study released by the New York Building Congress shows that construction costs in Manhattan have risen 5% in each of the last two years, GlobeSt.com reports.
This number is higher than the average construction cost hikes nationwide, which were 2.5% in 2013 and 3% in 2014.
Hospital construction is the most expensive, at $800-$950 per sf. Five-star hotels follow at $700-$800 per sf, and university buildings at $600-$850 per sf.
City construction company representatives are concerned that costs could continue to rise despite the recent plunge in oil prices, because essential trades such as curtain wall and cast-in-place concrete have been reported to be running out of capacity.
President of the New York Building Congress Richard T. Anderson says that the annual 5% increase rate should be a cause for concern to the city, even though a considerable portion of the recent increase in costs is the product of forces beyond the city's control. He called for the industry and government to look for ways to reduce the cost of construction and eliminate regulations and red tape, according to GlobeSt.com.
Related Stories
Architects | Mar 9, 2018
Designing healthier buildings: Fitwel certification system
The Fitwel certification system is relatively simple and involves registering a building on a custom scorecard.
Architects | Mar 7, 2018
Balkrishna Doshi named 2018 Pritzker Laureate
Over the course of 70 years, Doshi was instrumental in shaping the discourse of architecture throughout India, from low-cost housing for thousands to landmark projects like the Indian Institute of Management.
Architects | Mar 7, 2018
New National Building Museum exhibit explores the architecture of the Manhattan Project
The exhibit will run through March 3, 2019.
Architects | Feb 27, 2018
But first, let me take a selfie: Designing sharable moments
The concept of “selfie walls” has been around for years, but with their growing popularity they have begun to evolve and take on a life of their own.
Market Data | Feb 27, 2018
AIA small firm report: Half of employees have ownership stake in their firm
The American Institute of Architects has released its first-ever Small Firm Compensation Report.
Museums | Feb 26, 2018
*UPDATED* Design team unveils plans for the renovated and expanded Gateway Arch Museum
The goal of the project is to create closer and more robust connections between the Gateway Arch Museum and the landscape of the Jefferson National Expansion Memorial.
Architects | Feb 23, 2018
AIA elevates 152 members and two international architects to the College of Fellows
AIA Fellowship recognizes significant contributions to profession of architecture and society.
Airports | Feb 21, 2018
Terminal Modernization: Why Bother? Part II
This is the second post in our series examining why airport operators should bother to upgrade their facilities, even if capacity isn’t forcing the issue.
Urban Planning | Feb 21, 2018
Leading communities in the Second Machine Age
What exactly is the Second Machine Age? The name refers to a book by MIT researchers Erik Brynjolfsson and Andrew McAfee.
Retail Centers | Feb 20, 2018
Is there a future in retail banking? Part II
It is critical to not view the physical branch as just another sales channel, but as an important touchpoint along a customer’s journey.
