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
| Jul 17, 2014
How the 'pop-up' retail concept can be applied to workplace design
“Pop-up” has rapidly become one of the most pervasive design trends in recent years. It has given us pop-up shops and pop-up restaurants, but can it be applied to the professional work environment?
Sponsored | | Jul 17, 2014
A major hop forward
The construction of efficient metal buildings has helped Perrault Farms expand its hops-harvesting business.
| Jul 17, 2014
22 land questions to decide if your build site works
When you’re ready to build, land needs a serious amount of attention. Since it can singlehandedly shift your building plans, land must be investigated, questioned, and eyed from every angle. SPONSORED CONTENT
| Jul 16, 2014
Mergers and acquisitions of AE firms on track for strong year in 2014
Through the first six months of 2014, Morrissey Goodale tracked 101 sales of U.S.-based architecture and engineering firms, roughly the same amount as during the first six months of 2013.
| Jul 16, 2014
Ware Malcomb announces New Jersey office expansion
Architecture and design firm also honored for commercial real estate projects in New Jersey.
| Jul 16, 2014
Learning design fundamentals in the digital age – How to balance learning and technology
My colleague and I were once asked an insightful question by a Civil Engineering Professor that sparked an interesting conversation. He’d been told about our software by some of his students who had used it during their summer internship. SPONSORED CONTENT
| Jul 16, 2014
Check out this tree-like skyscraper concept for vertical farming
Aprilli Design Studio has stepped forward with a new idea for a vertical farm, which is intended to resemble a giant tree. It uses lightweight decks as outdoor growing space, adding up to about 25 acres of space.
| Jul 16, 2014
User input on aquatics center keeps students in the swim [2014 Building Team Awards]
Collaborative spirit abounds in the expansion and renovation of a high school pool facility in suburban Chicago.
| Jul 16, 2014
Nonresidential construction starts up 34% in June
Construction starts for nonresidential work saw a surge in June, rising more than a third compared with the previous month, according to Reed Construction Data.
| Jul 16, 2014
ASHRAE, IAQA team up to improve resources on indoor air quality
Indoor Air Quality Association will become part of the ASHRAE organization while maintaining its own brand and board; HQ will relocate to Atlanta.
