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 | Jul 7, 2021
Intl. Code Council appoints committees to lead energy code development
One-third of appointees are government regulators.
Codes and Standards | Jul 1, 2021
COVID-19 made payment delays to contractors much worse
Only one in ten companies is always getting paid in full.
Codes and Standards | Jun 30, 2021
New resource for public sector organizations to develop energy data management program
Dept. of Energy document contains more than 30 examples of successful implementations.
Codes and Standards | Jun 29, 2021
Biden China policy may spur more increased U.S. PV manufacturing capacity
Senate bill proposes advanced solar manufacturing production credit.
Codes and Standards | Jun 28, 2021
Local and state building energy performance standards aim to curb climate change
Owners must up the ante on operations and retrofits.
Codes and Standards | Jun 24, 2021
Biden Administration will restore ‘Waters of the U.S.’ protections ended by Trump
Early revision more likely to hold up in court, says legal expert.
Codes and Standards | Jun 23, 2021
Denver unveils renewable heating and cooling plan
City releases roadmap to decarbonizing existing homes and buildings.
Codes and Standards | Jun 22, 2021
Actually, few companies plan to significantly reduce their office footprint
CBRE survey shows that many firms will continue with hybrid work.
Codes and Standards | Jun 21, 2021
Vancouver, B.C., may delay new zero emissions building standards
Building permit delays may postpone new standards by a year.
Codes and Standards | Jun 17, 2021
Buffalo’s parking reform having noticeable impact on development
Elimination of mandatory parking allotments encourages new projects.