February 10, 2017
Good news: The cost of construction only rose 4% in New York City during 2016, according to the New York Building Congress. That’s about the same as the rate of cost increases in the rest of the country, and less than the 5% per year New York City developers are used to.
However, 4% is still a painful increase, with labor costs rising especially quickly. “No matter what sector you analyze – commercial, residential, corporate interiors, healthcare, education and cultural – construction activity remains robust, which means a stretched labor force, increased use of overtime, and an ability for contractors to pick and choose which projects to pursue,” said Carlo A. Scissura, president and CEO of the New York Building Congress.
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