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. — Construction Dive
According to Turner and Townsend’s 2021 International Construction Market Survey, the top 10 most expensive cities to build, in order, are:
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.
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 structural steel beams, reinforcement bars, softwood timber, and copper pipes, with some markets observing a jump of up to 40% compared to previous years.
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