The numbers are out, and it’s no surprise—it is expensive to build in New York City. As a matter of fact, New York City has the highest construction costs in the country. And they just keep going up.
The New York Building Congress released its New York City Construction Costs 2019 Construction Outlook Update this week. Last year, the cost of construction in New York City rose 5 percent, compared to a 3 to 4 percent increase nationally. That is about the same increase as the year before and, overall, NYC remains the country’s most expensive major city to build in. The primary driving factors in construction expenses were the cost of land, materials and regulations, according to the report.
The top ranking is created by Class A office and retail building costs, which were significantly higher than any other sector. New York is actually behind Chicago in hotel construction costs, less expensive than Los Angeles for K-12 education, and ranked lower than Chicago and San Francisco for multi-family residential construction.
Despite the overall numbers, it’s worth it to work in New York City, according to Carlo A. Scissura, president and CEO of New York Building Congress.
“While the cost of construction is high, the rewards for doing business in New York have never been greater.”