Dive Brief:
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It’s more expensive to build in New York than in any other city in the world, according to Turner & Townsend's 2015 International Construction Market Survey.
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The world’s second costliest city for construction is London, but perhaps not for long. The report warns that if building costs continue to escalate there, it could quickly bump New York City from the top of the list of priciest places to build.
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Hong Kong, Tokyo and the southern part of the United Kingdom round out the five most-expensive cities for building.
Dive Insight:
Not surprisingly, the greatest expense for New York City contractors, the report said, is labor, whose cost is rising along with the growing demand for skilled craftsmen.
The report’s authors said employers are getting their money’s worth, calling New York’s labor force “highly productive” and noting that weekend hours are common in the city.
London’s work force is almost 70% less expensive than New York’s, yet the overall cost of construction in the U.K. capital is just 4% lower than in the Big Apple, the report noted.