San Francisco is now the world’s most expensive spot for construction, according to the recently released 2019 International Construction Market Survey.
According to the latest survey, the average cost of construction per square foot in San Francisco rose to $416 per square foot, an increase of 5 percent from the previous year. That average cost was significantly higher than its closest competitor, New York City, where construction averaged $368 per square foot. London, Zurich and Hong Kong rounded out the top five internationally. Seattle, Chicago, Vancouver, Indianapolis, Phoenix, Atlanta, Houston and Toronto were the top ten North American cities.
Experts believe the increased cost in San Francisco is tied to the growing technology industry and increase steel prices. According to the report, prices for steel beams increased 30 percent year over year.