San Francisco has overtaken Tokyo as the world’s most expensive city for construction, according to a new report from Turner & Townsend.
The cost for construction in San Francisco is $439.29 per square foot. North America had four markets in the top 10. New York City ranked fourth, Boston ranked eighth, and Los Angeles ranked ninth.
Cost increases in North America were due to the strengthening of the U.S. dollar, higher building material costs driven by supply chain disruptions, and high labor costs. The report found that 38.6% of markets surveyed were classified as “hot” (28.4%) or “overheating” (10.2%). These markets have conditions that risk acting as a brake on development. This is an increase of 10% over 2021, while the number of “cold” markets fell from six to one.
The rankings with the price per square foot, according to the report, are:
- San Francisco $439.29
- Tokyo $433.37
- Osaka, Japan $423.49
- New York City $419.67
- Geneva $402.47
- Zurich $398.16
- Hong Kong $393.58
- Boston $371.46
- Los Angeles $369.92
- London $363.23
Related Stories
Building Team | Jul 30, 2018
Construction tech is the new investment darling for VC funds
In the first half of 2018, venture capital firms invested $1.05 billion in global construction tech startups, setting a record high.
Building Team | Jun 22, 2018
What owners should know before choosing the design-build project delivery method
Outside of drawing up a well-written contract, owners often overlook a key attribute that can significantly impact the success of a design-build project, writes Skanska’s Julie Hyson.
Building Team | Jun 13, 2018
How your AEC firm's brand affects recruiting top talent
There is a major shift in workforce demographics as upwards of 80 million baby boomers retire over the next fifteen years.
Sponsored | | May 24, 2018
Water treatment facility renovation benefits from laser scanning technology
Sponsored | Building Team | May 8, 2018
5 tips to improve employee utilization (and morale)
Ways to increase productivity and revenue, while providing a supportive workplace environment
Architects | Apr 5, 2018
Tech Report 5.0: The Human Touch
Can studying humans at a behavioral level produce better buildings? Cognitive architecture experts are working to find out.
Sponsored | Building Team | Mar 28, 2018
6 strategies to keep your project on budget
Here are six strategies to keep your projects on or even under budget.
Sponsored | | Mar 14, 2018
Getting there may be costing you more
Commercial transportation is getting more expensive, and it’s driving up the price of steel.
Sponsored | Building Team | Dec 12, 2017
3 tips to address the top causes of budget overruns
The most cited issues are communication breakdowns, inadequate fees for the work provided, and unrealistic deadlines or schedules.
