NYC Construction Costs Increasing: Up 5% in 2018

New York City skyline/ Photo by Betsy Kim

NEW YORK CITY—New York City’s construction costs have increased from 2017 to 2018 by approximately 5%. Nationally construction costs have risen by 3% to 4%, and similar to New York City have been on an incline since 2010. The New York Building Congress published its Construction Costs February 2019 report with these findings, other trends and their explanations.

“As New York’s population and economy continue to grow, every sector of the building industry—commercial, residential, healthcare, education, cultural and infrastructure—remains robust, offering opportunity for both the labor force and contractors,” says Carlo A. Scissura, the organization’s president and CEO. He points to the high costs of land and materials and regulations as the primary drivers of cost increases in 2018. He nonetheless adds, “While the cost of construction is high, the rewards for doing business in New York have never been greater.”