Dive Brief:
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The cost to build in Manhattan spiked 5% each year in both 2013 and 2014, according to the New York Building Congress.
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Construction costs there rose more in that time period than the national average of 2.5% in 2013 and 3% in 2014.
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The most expensive projects to build in the city are hospitals, five-star hotels and university buildings, according to the report.
Dive Insight:
Price hikes often accompany a building boom, partly because the greater demand for construction materials and laborers drives up the cost of those essentials. In particular, New York contractors are paying top dollar for insulation, piping and steel, the report said.
Soaring prices might not be so good for business, however. A separate report by Dodge Data & Analytics late last month noted that contractors in the city ended last year with 40% fewer contracts for future work than in 2013.