San Francisco has overtaken Tokyo as the world’s most expensive city for construction, according to a new report from Turner & Townsend.
The cost for construction in San Francisco is $439.29 per square foot. North America had four markets in the top 10. New York City ranked fourth, Boston ranked eighth, and Los Angeles ranked ninth.
Cost increases in North America were due to the strengthening of the U.S. dollar, higher building material costs driven by supply chain disruptions, and high labor costs. The report found that 38.6% of markets surveyed were classified as “hot” (28.4%) or “overheating” (10.2%). These markets have conditions that risk acting as a brake on development. This is an increase of 10% over 2021, while the number of “cold” markets fell from six to one.
The rankings with the price per square foot, according to the report, are:
- San Francisco $439.29
- Tokyo $433.37
- Osaka, Japan $423.49
- New York City $419.67
- Geneva $402.47
- Zurich $398.16
- Hong Kong $393.58
- Boston $371.46
- Los Angeles $369.92
- London $363.23
Related Stories
Building Team | Jan 7, 2019
2019 outlook: Firms not betting on another record-setting year
Despite the positive indicators for the market, AEC professionals remain largely cautious when it comes to growth prospects for 2019.
Building Team | Jan 4, 2019
Design-build delivery is setting new parameters for project management
FMI paper provides clues to what makes these contracts click (or not).
Building Team | Dec 11, 2018
And then there were two: HQ2 sites, in hindsight, seemed obvious
The two cities already had the greatest number of Amazon employees outside of Seattle.
Building Team | Oct 16, 2018
Dead lobby syndrome: An affliction only experience can cure
The competition for great tenants has rarely been as fierce as it is today.
Building Team | Aug 21, 2018
Five habits that are keeping your digital strategy from working
Strategies are always created with the best of intentions for improving business, the effort involved in executing the strategy – especially ones involving disruptive digital capabilities – is greatly underestimated.
Building Team | Aug 17, 2018
Silicon Valley is here. Get over it.
AEC firms continue to have angst about a tech-industry takeover of the market. One expert’s advice: “Embrace technology. Do not fear. You can shape it.”
Sponsored | Building Materials | Aug 1, 2018
Building for now... and the future
Metal building systems are often selected for large-sized structures, and with good reason.
Building Team | Jul 30, 2018
Construction tech is the new investment darling for VC funds
In the first half of 2018, venture capital firms invested $1.05 billion in global construction tech startups, setting a record high.
Building Team | Jun 22, 2018
What owners should know before choosing the design-build project delivery method
Outside of drawing up a well-written contract, owners often overlook a key attribute that can significantly impact the success of a design-build project, writes Skanska’s Julie Hyson.
