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
| Sep 26, 2016
RELIGIOUS FACILITY GIANTS: A ranking of the nation’s top religious sector design and construction firms
Gensler, Leo A Daly, Brasfield & Gorrie, Layton Construction, and AECOM top Building Design+Construction’s annual ranking of the nation’s largest religious facility AEC firms, as reported in the 2016 Giants 300 Report.
Architects | Sep 26, 2016
Explore the world through architectural adventures
A new travel program offers design enthusiast travelers 10 global destinations.
Architects | Sep 21, 2016
DLR Group broadens its practice range and market penetration with addition of Westlake Reed Leskosky
The merger, say company officials, creates “a global design leader” in a consolidating industry.
Architects | Sep 21, 2016
Design for the transition from thinking to creating
While heads-down work continues, the changing nature of learning and work has resulted in a shift toward frequent and spontaneous exchanges.
Codes and Standards | Sep 21, 2016
Healthy buildings becoming a key design priority for both architects and building owners
Nationwide survey finds nearly three of four architects cite health impacts influencing design decisions
Cultural Facilities | Sep 19, 2016
International competition recognizes insect-inspired design for Moscow Circus School
The proposal would make the school’s activities more transparent to the public.
Architects | Sep 19, 2016
A workplace designed for the innovation economy
Over the past 100 years, how we work has changed dramatically, and these changes have impacted workplace design.
Architects | Sep 16, 2016
Former architect now builds architectural wonders out of LEGO blocks
Adam Reed Tucker’s creations are currently on display at the Museum of Science and Industry.
Architects | Sep 15, 2016
Implicit bias: How the unconscious mind drives business decisions
Companies are tapping into the latest research in psychology and sociology to advance their diversity and inclusion efforts when it comes to hiring, promoting, compensation, and high-performance teaming, writes BD+C's David Barista.
Museums | Sep 14, 2016
Architectural model museum opens in Japan
The museum includes models from Japanese architects including Shingeru Ban, Kengo Kuma, and Riken Yamamoto.
