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 | Apr 20, 2016
Bill Hellmuth named HOK’s new CEO
Hellmuth has been HOK's President since 2005. The firm will be led by a design principal for the first time since 1990.
Libraries | Apr 18, 2016
Best in Library Design: AIA names seven projects 2016 Library Building Awards winners
Snøhetta’s Ryerson University student center and the Billings (Mont.) Public Library by Will Bruder+Partners highlight the seven winning projects.
Architects | Apr 14, 2016
You can watch over 50 architectural documentaries on YouTube for free
The Arts & Culture Bureau YouTube channel offers architectural documentaries about structures and works that span thousands of years and dozens of locations
Senior Living Design | Apr 14, 2016
Creating a home for eldercare using the ‘Green House’ design concept
VOA Associates’ Douglas King offers design considerations in implementing the Green House concept in eldercare for continuing care retirement communities.
Industrial Facilities | Apr 13, 2016
Ford begins 10-year plan to centralize Dearborn, Mich., campus
The company said that it will rebuild 7.5 million sf of work space over a 10-year period, which will shift 30,000 employees from 70 buildings now into two primary locations.
Building Tech | Apr 12, 2016
Should we be worried about a tech slowdown?
Is the U.S. in an innovative funk, or is this just the calm before the storm?
Multifamily Housing | Apr 7, 2016
Multifamily and Specialized Housing projects honored in 2016 AIA Housing Awards
A San Francisco low-income mixed-use complex, a Los Angeles homeless veterans housing facility, and a series of student residential buildings at UMass were among the winners.
Green | Apr 4, 2016
AIA report analyzes 20 years of the best green projects
"Lessons from the Leading Edge" is a study of the 200 Committee on the Environment (COTE) Top Ten Award winning projects since 1997.
Architects | Apr 1, 2016
Adrian Smith earns UIC’s Legacies and Leaders Award
The Chicago architect graduated from the school and created a scholarship for aspiring architects.
Architects | Mar 31, 2016
Zaha Hadid dies at 65
Often credited as being a pioneer for women architects for her work in a male-dominated field, Hadid had designs commissioned around the world from London to Hong Kong to Cincinnati.
