U.S. cities stand out as most expensive places in the world for construction

U.S. cities comprise five of the top ten most expensive cities in the world for construction, according to Turner & Townsend’s 2025 global construction market intelligence report.

New York is in first place, with an average cost of US$5,744 per square meter, followed by San Francisco at US$5,504. Two Swiss cities, Zurich and Geneva, are next followed by London to round out the top five.

Los Angeles is sixth, with Chicago, seventh and Tokyo eighth. Philadelphia is in ninth place and Sapporo, Japan in tenth. A global squeeze on skilled labor is keeping construction costs high, the report says.

High labor costs, averaging at US$76 per hour, and rising as high as US$131.4 per hour in New York, are a key factor making U.S. construction costs so high. This is being fueled by a construction skills shortage of key specialists, as 87% of North American markets report shortages of mechanical, engineering and plumbing trades, the report says.

The global state of demand for skilled labor outstripping supply is exacerbated by moves in many regions to restrict migration, the report says.