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San Francisco passes New York to become world’s costliest place to build

Infra News - Published on Mon, 15 Apr 2019

Image Source: San Francisco Chronicle
San Francisco Chronicle reported that San Francisco is now the world’s most expensive place to build. The city’s construction costs rose 5% last year, and it’s now more pricey than New York, according to a report released Thursday by consulting company Turner & Townsend. Costs rose amid demand for new buildings from the booming tech sector, plus a severe construction labor shortage and a spike in steel prices attributed to US and China tariffs. Rising costs are stalling and killing much-needed San Francisco housing projects, exacerbating the shortage, according to developers.

A long-standing problem is the lack of construction workers, with many veterans leaving the industry after the 2008 recession. High housing costs also have caused some workers to move out of the area, and many commute for hours to reach job sites.

Average construction wages in San Francisco were USD 90 per hour in 2018, third-highest in the world behind New York’s USD 101.30 per hour and Zurich’s USD 110 per hour.

5%: San Francisco’s construction-cost increase in 2018

USD 417: San Francisco’s average cost per square foot to build, the highest in the world

USD 90: San Francisco’s average hourly construction wage, third-highest in the world

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Posted By : Rabi Wangkhem on Mon, 15 Apr 2019
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