Several U.S. cities rank in the top 10 most expensive urban areas for building construction worldwide, according to a survey by global professional services company Turner & Townsend.
After Tokyo, the costliest construction market at $4,002 per sqm, and Hong Kong, at $3,894 per sqm, San Francisco ($3,720 per sqm) took the bronze. New York ($3,511 per sqm) was close behind, followed by Boston ($3,375 per sqm), Los Angeles ($3,186 per sqm), and Chicago ($2,935 per sqm).
Rising costs across all 11 U.S. markets surveyed are likely to be sustained through 2021, 2022, and 2023, according to Turner & Townsend’s forecasts. The inflation rate in San Francisco, which grew by 3.5% in 2020, is expected to reach 5% through 2022 and 2023.
The principal driver for rising costs is anticipated to be rising infrastructure spending, following President Biden’s plans to commit 1% of GDP into areas including transportation, utilities, broadband networks, and renewable energy, over eight years.
Related Stories
Codes and Standards | Jan 11, 2017
OSHA prompts more proactive approach to construction site safety
Remote operated camera systems are being used to mitigate risk in real time.
Codes and Standards | Jan 10, 2017
Plunging solar power costs making PVs more compelling for owners, developers
Technical and manufacturing advances are driving down prices.
Codes and Standards | Jan 9, 2017
Boston’s plans for new development at odds with flood projections
One plan calls for building in areas predicted to be flooded during high tides as sea levels rise.
Codes and Standards | Jan 9, 2017
New LEED for Cities, LEED for Communities pilot certifications unveiled
Requires tracking of performance data and progress toward goals.
Codes and Standards | Jan 9, 2017
China claims top ranking outside of U.S. for total LEED-certified space
Canada, India, Brazil, and Korea round out top 5.
Codes and Standards | Jan 6, 2017
OSHA prompts more proactive approach to construction site safety
Remote operated camera systems are being used to mitigate risk in real time.
Codes and Standards | Jan 5, 2017
2018 building energy code upholds efficiency gains
Efforts to scale back efficiency requirements largely defeated.
Codes and Standards | Jan 4, 2017
Low-income housing doesn’t lower neighborhood housing values
A Trulia study contradicts longstanding fears.
Codes and Standards | Jan 3, 2017
Intelligent transportation systems have implications for designers, construction firms
Sensors and Internet of Things devices will have to be embedded in infrastructure.
Codes and Standards | Dec 15, 2016
OSHA releases safety recommendation guide for construction industry
It is said to be most helpful to small and mid-sized contractors.