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 | Jun 1, 2021
Passive House standards proving their worth in multifamily sector
Energy performance beats conventionally built by 32% to 58%.
Codes and Standards | May 27, 2021
Pittsburgh combats construction fraud
Crackdown on tax, insurance, and workers’ comp malfeasance.
Codes and Standards | May 26, 2021
Proposal to add photovoltaic panels to the R2 Standard for electronics recycling
Hundreds of facilities in 33 countries could begin recycling PVs.
Codes and Standards | May 25, 2021
International Energy Agency lays out roadmap to net zero
Focus is on energy generation, but building efficiency also plays a role.
Codes and Standards | May 24, 2021
Biden Administration will make new investments in building energy efficiency
Focus on grid-interactive buildings; Energy Star expansion; new targets for energy, water reduction.
Codes and Standards | May 20, 2021
Solar panel trade group issues guidelines to rid use of components built with forced labor
Growing concern that PV industry is dependent on work camps in China.
Codes and Standards | May 19, 2021
Smart electric panels can aid transition to renewable energy
Allow customers better control of circuits; utilities can better manage demand.
Codes and Standards | May 18, 2021
Cross-laminated timber performs better than expected in shear test
Tests conducted in support of new criteria for design of CLT diaphragm.
Codes and Standards | May 17, 2021
Latest Manual on Uniform Traffic Control Devices criticized for not considering bikes, pedestrians
More than a dozen advocacy groups want feds to start over.
Codes and Standards | May 13, 2021
LEED-certified federal buildings don’t use less energy than average
May be due to trade-offs on how score is developed.