Cost of Construction Reaching New Heights

Major US Cities Among the Most Expensive Places to Build

Recently, the major cities of the United States seem to be topping the charts as the most expensive places to build. The soaring costs of construction in the US can be attributed to a few different factors. The rising cost of materials and pressure on labor paired with President Biden’s drive to build back better after the pandemic have all had an impact on the construction market. According to the international construction market survey, the current market conditions will continue as they are, and inflation will continue well into 2023. 

The most expensive city to build in the US is San Francisco. The average cost of construction there is $3720 per square meter. According to global rankings of several international surveys, the city is the third most expensive in the world in which to build after Tokyo and Hong Kong. Following San Francisco is New York where the cost of construction is $3511 per square meter, and it is also ranked as the fourth most expensive place to build in the world. In the States, not far behind on the list of most expensive cities in which to build are Boston, Los Angeles, and Chicago, with the cost of construction being $3375, $3186, and $2935 per square meter, respectively. 

Recent surveys reported inflation across all 11 markets in the United States, and it is expected that the rising costs will be sustained throughout 2022 and 2023. Among Canadian cities, Toronto takes the lead with the cost of construction being $2167 per square meter. It is followed immediately by Vancouver where the cost of construction is $2117 per square meter. Ottawa takes third place in Canada with the cost of construction being $2076 per square meter. 

International Market Survey

The international market survey report includes all the details about the global construction market. You can peruse the report to find out about the major investment opportunities across the United States. You can also find details about the capacity challenges that labor and material markets are facing in the report. 

Labor costs in major US cities remain among the highest in the world. The increase in cost of labor in US cities also impacts the market, and the cost of labor in Canada is almost half of these US cities. You will find an in-depth analysis of global construction costs and the factors that drive them in the international construction market survey report.