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
Museums | Oct 20, 2015
Frank Lloyd Wright’s Bachman Wilson House finds new home at Arkansas museum
Crystal Bridges Museum reconstructed the 61-year-old Usonian house and will open it to the public in November.
Architects | Oct 20, 2015
Four building material innovations from the Chicago Architecture Biennial
From lightweight wooden pallets to the largest lengths of CLT-slabs that can be shipped across North America
University Buildings | Oct 16, 2015
5 ways architecture defines the university brand
People gravitate to brands for many reasons. Campus architecture and landscape are fundamental influences on the college brand, writes Perkins+Will's David Damon.
Architects | Oct 13, 2015
Architects Foundation expands National Resilience Initiative
The group is launching a search for three more NRI members.
Architects | Oct 13, 2015
Santiago Calatrava wins the European Prize for Architecture
The award honors those who "forward the principles of European humanism."
Office Buildings | Oct 5, 2015
Renderings revealed for Apple's second 'spaceship': a curvy, lush office complex in Sunnyvale
The project has been dubbed as another “spaceship,” referencing the nickname for the loop-shaped Apple Campus under construction in Cupertino.
Airports | Oct 5, 2015
Perkins+Will selected to design Istanbul’s 'Airport City'
The mixed-use development will be adjacent to the Istanbul New Airport, which is currently under construction.
High-rise Construction | Oct 5, 2015
Zaha Hadid designs cylindrical office building with world’s tallest atrium
The 200-meter-high open space will cut the building in two.
Architects | Oct 2, 2015
Herzog & de Meuron unveils design for Vancouver Art Gallery expansion
The blocky, seven-story wood and concrete structure is wider in the middle and uppermost floors.
Airports | Sep 30, 2015
Takeoff! 5 ways high-flyin' airports are designing for rapid growth
Nimble designs, and technology that humanizes the passenger experience, are letting airports concentrate on providing service and generating revenue.