Archinect - News

San Francisco now tops the most expensive cities to build in the world, new survey finds

2022-07-13T18:30:00-04:00

Turner and Townsend’s latest annual International Construction Market Survey names disruptions in the global supply chain, triggered in part by lockdowns in China due to COVID-19, and rising commodity costs following the invasion of Ukraine as key stress factors for construction markets worldwide.

According to the survey, the 2022 ranking is led by these cities, including four U.S. markets among the top ten:

San Francisco ($4,728.5/sqm)
Tokyo ($4,664.8/sqm)
Osaka ($4,558.5/sqm)
New York City ($4,517.3/sqm)
Geneva ($4,332.2/sqm)
Zurich ($4,285.8/sqm)
Hong Kong ($4,236.5/sqm)
Boston ($3,998.4/sqm)
Los Angeles ($3,981.8/sqm)
London ($3,909.8/sqm)

Driven by strong demand from tech corporations, a strengthening of the U.S. dollar as well as higher material and labor costs, San Francisco moved up from its third place position last year and surpassed Tokyo and Hong Kong as the priciest market for construction with an average cost of $4,728.50 per square meter ($439.29 per square foot).

Many more No...

San Francisco, New York, Boston, and Los Angeles among the ten most expensive cities to build in the world, according to new survey

2021-08-03T19:38:00-04:00

Tokyo ranks as the most expensive city to build in the world, driven by the extensive pipeline of real estate and infrastructure projects pushing up demand for construction resources, according to the report. Following Tokyo are Hong Kong, San Francisco and New York. Boston and Los Angeles rank seventh and ninth, respectively, as both of these markets generally have high labor costs for construction.

According to Turner and Townsend’s 2021 International Construction Market Survey, the top 10 most expensive cities to build, in order, are:

Tokyo
Hong Kong
San Francisco
New York City
Geneva
Zurich
Boston
London
Los Angeles
Macau

With increased activity levels in construction markets in 2021 as the world recovers from the covid-19 pandemic, supply chain constraints are increasing and skill shortages are worsening, resulting in substantial construction cost inflation, as detailed by Turner and Townsend. International border closures have impacted the availability of imported labor, which has been detrimental to construction markets that depend on migrant workers.

Previously on Archinect: According to ABC chief economist, construction industry is rebounding despite high prices and lack of skilled labor

In addition, more than a third of respondents to the survey said the pandemic has had a high or significant impact on their supply chains. This is evident in increased material costs, such as st...

London, New York, Hong Kong are the most expensive cities in new International Construction Cost Index

2020-04-02T17:35:00-04:00

The latest International Construction Cost Index has just been released, and the top spots don't really come as a big surprise: London, New York, Hong Kong, Geneva, and San Francisco are the planet's most expensive cities for construction.

Compiled by design and consultancy organization Arcadis, the 2020 ICC Index surveyed construction costs, market conditions, and expert opinions in 100 large cities across six continents.

The top ten most expensive cities are:

1. London
2. New York
3. Hong Kong
4. Geneva
5. San Francisco
6. Copenhagen
7. Tokyo
8. Zurich
9. Dublin
10. Edinburgh

The ten cheapest surveyed cities are:

91. Hangzhou
92. Bangkok
93. Chengdu
94. Guangzhou
95. Wuhan
96. Shenzhen
97. Kuala Lumpur
98. Mumbai
99. New Delhi
100. Bengaluru

Arcadis 2020 International Construction Cost Index (Source)

The report also highlighted emerging industry trends associated with climate change, such as sustainable construction, decarbonization, climate resilience, and emission reduction goals.

New this year...

Shocker: New York tops list of most expensive cities for construction

2016-01-06T17:54:00-05:00

[The International Construction Costs Report 2016] found that New York, London and Hong Kong ranked as the world’s most expensive cities to build in, with strong currencies and significant resource constraints resulting in higher prices. Elsewhere, the gradual recovery in the Eurozone has meant that these markets have avoided this high construction inflation. While, in Asia, the Chinese economic slowdown and weakening demand in many cities means that overall growth in Asia is expected to ease