Building Costs Per Square Foot in the State of New York, USA

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Building Costs Per Square Foot in the State of New York, USA

  • Cumming Report New York 2021 – Construction Market Analysis – Third Quarter

  • New York City Construction Spending 2000 to 2020 – Report by the New York State Comptroller Office.

  • New York City – Global Cost Comparison (New York Building Congress Report 2018)

  • New Building Filings in New York 2008 to 2020 (REBNY)

  • New York Construction Costs Per Square Foot 2021 – Rider Levett Bucknall (RLB) Report

  • Building Costs Per Square Foot in the State of New York for Luxury, Semi-Luxury, Best Standard, Good Standard, Average Standard and Minimum Standard Homes Single Family Homes

  • List of 22 Metropolitan Areas/Cities in New York – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

  • Cheapest and Most Expensive Places To Build in New York.

Newly built 3 bedroom home (size 2100 sqft) on 2047 Batter Street, Pattersonville, New York

Built in 2021 Newly built 3 bedroom home (size 2100 sqft) on 2047 Batter Street, Pattersonville, New York – Price $499,900

Building costs in New York are 6% more than the national average, higher than 42 states in the USA. Traditionally, New York is the most expensive city to build in the USA due to a sustained construction boom that took off in 2007, spanning over a decade of a 38% price increase culminating in 2018 and continuing. Commercial buildings for office space, retail and the hospital industry as well as the city’s demand for upmarket multi-dwelling units are the major drivers of increasing costs. Infrastructural development projects also add to the composite cost index. Office building costs including renovations and alterations increase at a much faster rate than other categories in New York.

According to annual reports by Arcadis International Inc, New York was consistently in the top 5 most expensive cities to build in the world, taking the top spot for three years in 2016, 2017 and 2019. In 2018, New York was the second most expensive city to build after San Francisco. The year 2018 saw 5 American cities in the top 10 global rankings, with San Francisco, New York, Boston, Philadelphia and Chicago at number 1, 2, 5, 6 and 7 respectively. In 2019, New York regained its international spot as the most expensive city to build, with San Francisco coming second. Building costs in Boston slided down to 10th position, and Philadelphia came in at number 11. In 2020, New York was edged by London as the most expensive city to build in the world, while San Francisco fell to 5th position. In 2021, New York was the 6th most expensive city in the world to build commercial and luxury multi-family residential properties , followed by San Francisco.

Just like other major cities in the United States, the state of New York was affected by the Covid-19 pandemic in 2020, disrupting the 9-year growth curve in employment, construction spending and aggregate volume of projects. The state lost 44,400 jobs in the construction sector, of which half (23,300) are from the City of New York alone. This was the worst decline in construction employment since 1995. Small construction firms with a maximum headcount of 20 contribute 33% of employment in New York’s construction industry. The city employs the highest number of migrant construction workers in the United States and in the state. Migrants make up 53% of workers on industrial payroll. Due to the Covid-19 pandemic, construction spending declined to $55.5 billion and total projects valuation declined to $85 billion. Despite being the 4th biggest construction sector in the USA in 2020, the State of New York incurred the biggest losses in construction jobs, as overall unemployment hovered around 9% since 2020. On the premise of a rebound predicted by the New York Building Congress, the Federal Government committed $1.9 trillion in Stimulus Funds targeted towards capital projects to spur construction activity and improve infrastructure around the country.

Newly built 3 bedroom home (size 2100 sqft) on 2047 Batter Street, Pattersonville, New York (2)

Built in 2021 Newly built 3 bedroom home (size 2100 sqft) on 2047 Batter Street, Pattersonville, New York (2) – Price  $499,900

Cumming Report New York 2021 – Construction Market Analysis – Third Quarter

Cumming Report New York 2021 – Construction Volume by Sector – Third Quarter

The chart below shows the annual construction volumes by sector between 2016 and 2020, as well as the projections from 2021 to 2023. There was $65,172 million worth of residential construction projects in 2016, followed by a decrease in volume in 2017, valued at $63,505 million. The decline continued in the following year, finishing off at $61,730 million in 2018. The volume of residential construction projects increased in 2019 to $62,647 million. The biggest decline occurred in 2020, with the total volume of residential construction works plunging to $60,145 million due to the Covid-19 pandemic. The residential construction industry was expected to recover in 2021 despite the Covid-19 pandemic, increasing to $61,961 million worth of projects. The biggest drops in residential building are projected to $57,813 million in 2022 and $55,606 million in 2023.

Cumming Report New York 2021 – Construction Volume by Sector – Third Quarter

Cumming Report New York 2021 – Construction Volume by Sector – Third Quarter

Annual construction volumes in commercial building follow a nearly similar trend between 2016 and 2020, and 2021 to 2023. There was $9,628 million worth of office, retail and hospitality building projects in 2016. The volume increased to $9,947 million in 2017 and $10,140 million in 2018. The volume decreased to $9,839 million in 2019 which was the beginning of a four-year decline projected to 2023. In 2020, the total volume of commercial construction projects decreased to $8,830 million due to the Covid-19 pandemic. A further decline is expected in 2021, projected to $8,035 million, and finishing off at $7,754 million in 2023.

Residential projects contribute the largest volume in the construction market in terms of aggregate contract amounts, followed by infrastructure which is roughly half the volume of residential projects. In third place is the education sector which is 45% the volume of residential projects, followed by commercial building which is 43% the volume of residential projects. At the bottom are the manufacturing and healthcare sectors which are roughly 10% the volume of residential construction.

Cumming Report New York 2021 – Annual Construction Volume (All Sectors)

The chart below shows the combined volumes in all sectors (residential, commercial, manufacturing, healthcare, education, infrastructure and other). In 2016, there $18,000 million worth of construction projects, which increased to $18,750 million in 2017 and $19,000 million in 2018. The rise in volumes continued to $19,500 million in 2019 and nearly $21,000 million in 2020. Volumes remained stable in 2021 at a little over $20,000 million and under $21,000 million.

Cumming Report New York 2021 – Annual Construction Volume (All Sectors)

Cumming Report New York 2021 – Annual Construction Volume (All Sectors)

Cumming Report New York 2021 – Construction Spending Index in the State and City

The chart below shows the construction spending index from 2012 to 2021 and projected to 2023. The city, state and national spending indices are compared between this period. Beginning with the base year in 2012, the city spending index matched the national index, rising slowly along the same curve between 2012 and 2013. It then deviated from the national index, taking a steep upward slope to the peak value at 1.4 in 2015. From this point it fell down a steep slope, intersecting with the national index in 2016. The city spending index then took a relatively stable decline up to 2021, settling at 1.2. So basically, construction spending in New York City was equal to the National Average from 2012 to 2013, and way higher than the National Average between 2013 and 2016. Construction spending in New York City fell way below the National Average between 2016 and thereafter. Construction spending in the State of New York remained below NYC in the whole period 2012 to 2021, with the exception of 2015 where State spending was equal to the City of New York.

Cumming Report New York 2021 – Construction Spending Index in the State and City

Cumming Report New York 2021 – Construction Spending Index in the State and City

Cumming Report New York 2021 – Major Construction Projects in the State of New York

The chart below shows the top 10 biggest construction projects in the State of New York as at 2021. The aggregate volume of these projects is $122.7 billion, and the City of New York contributes $97.2 billion (79%) worth of projects in the state. The Gateway Tunnel is the most expensive project in the State of New York, valued at $29.1 billion, followed by the Second Avenue Subway (Phase 2) project valued at $17 billion. The third most expensive projects are the Sunnyside Yard Expansion and Second Avenue Subway (Phase 3) at around $14.4 and $14.2 billion respectively. In fourth place is the Hudson River Tunnel project valued at $11.6 billion. The Eastside Access Project comes fifth at $11.1 billion. This is followed by the AirTrain LaGuardia project at $8 billion. In seventh position is the Staten Island Railway Project valued at $7.1 billion. This is followed by the NYCTA Subways and Staten Island Railway Project at $5.2 billion. The Empire Station Complex is the 10th most expensive project in the State of New York at $5 billion.

Cumming Report New York 2021 – Building Costs Per Square Foot in New York

The chart below shows the building costs per square foot in New York for residential, commercial, healthcare, educational, public, community and industrial buildings including parking. Detached single family homes of medium quality cost $396 per square foot to build, whereas mid-rise apartments and condos will take $859 per square foot to build.

Cumming Report Building Costs in New York City

Cumming Report Building Costs in New York City

Cumming Report Building Costs in New York City Bar Graph

Cumming Report Building Costs in New York City Bar Graph

New York City Construction Spending 2000 to 2020 – Report by the New York State Comptroller Office.

The NYBC chart below shows construction spending in the City of New York over a two-decade span from 2000 to 2020, as well as the projected spending up to 2022. The bar chart shows spending gently increasing from $14 billion to $17 billion from 2000 to 2002. It then drops to $15 billion in 2003 and rises over a steep slope to $31 billion in 2007. It drops to $30 billion in 2008 and declines to $26 billion in 2009. Spending rises again to $30 billion in 2010 and falls once again to $23 billion in the following year. A sustained steep rise in spending is observed between 2011 and 2019, rising from $23 billion to $60 billion over an eight-year span at an average rate of 12.9% per year. This was followed by the first drop in spending in 2020 caused by the Covid-19 pandemic impact, which reduced spending to $55 billion, a figure which resembles average spending in 2017 and 2018. Spending is projected to remain relatively stable in 2021 and 2022.

New York City Construction Spending 2000 to 2020 – Report by the New York State Comptroller Office.

New York City Construction Spending 2000 to 2020 – Report by the New York State Comptroller Office.

The overall construction spending in 2020 can be broken down by sectors. The residential building sector realized a 9.8% decrease in spending, amounting to $17.8 billion. Spending in residential construction is expected to decrease in 2021 and 2022 as New York experiences a declining population.

 

The non-residential sector realized a 21.4% decrease in spending, amounting to $16.6 billion. Spending in commercial construction (office and hotel) is expected to increase in 2021 and 2022.

The public sector realized a 6.7% increase in spending, amounting to $21 billion, driven by Federal Stimulus Funds targeting capital projects. A sum of $5.9 billion in Stimulus Funds was allocated to the City of New York alone, whereas the State received $12.7 billion in funds.

 

 

New York City Building Permits 2000 to 2020 – Report by the New York State Comptroller Office

 

The NYC Department of Buildings oversees the approval of new building plans to ensure compliance with municipality codes. A building permit which gives the green light to begin construction on site is issued upon approval of the drawings and other submissions. The chart below indicates the number of building permits issued in the City of New York on a yearly basis, from 2000 to 2020:

New York City Building Permits 2000 to 2020 - Report by the New York State Comptroller Office

New York City Building Permits 2000 to 2020 – Report by the New York State Comptroller Office

About 83,000 building permits were issued in 2000, increasing on a year-by-year basis until 2007 to reach a peak value of 125,000 permits within the first decade. The number of permits remained stable in 2008 then fell to 115,000 permits in 2009, remaining stable in 2010 before rising along a steep slope to 176,400 permits in 2019. In 2020, the number of building permits issued by the NYC Department of Buildings plunged to 140,000 resembling the figures in 2013. The impact of the Covid-19 pandemic was felt as construction activity was disrupted and building proposals were shelved.

Between 2010 and 2019, three New York Boroughs saw an increase in new building permits, namely Brooklyn, Staten Island and the Bronx which increased by 73.5%, 61.5% and 53% respectively. Two New York Boroughs saw a drop in new permits, namely Manhattan and Queens which dropped by 23.4% and 19% respectively.

There was a 31.2% drop in permits in 2020. The first quarter of 2021 registered 20.4% more permits than the same period in 2020, but less than the same period in 2019.

Number and Size of Construction Firms in New York City 2020 – Report by the New York State Comptroller Office

According to the Wage and Employment Census by the NYS Department of Labour, small construction firms with a maximum headcount of 19 employed 34% of workers in the construction industry in 2020. There were 14,004 firms with less than 20 employees. Medium-size firms with 20 to 99 workers employed 33% of workers in the construction industry. There were 1142 medium-size firms in 2020. Large firms with 100 to 499 workers employed 28% of workers in the construction industry. There were 208 large firms in 2020. Mega-size firms with 500 or more workers employed 4% of workers in the construction industry. There were 8 mega-size firms in 2020.

Number and Size of Construction Firms in New York City 2020 - Report by the New York State Comptroller Office

Number and Size of Construction Firms in New York City 2020 – Report by the New York State Comptroller Office

New York City Construction Cost Index 2007 to 2018 – New York Building Congress Report

The chart below shows the construction cost index in the City of New York over an eleven-year span from 2007 to 2018. Three construction indices are compared to each other, as well as against the New York consumer price index (CPI). The Rider Levett Bucknall (RLB) Construction Index is the Tender Price Index, whereas the ENR Construction Index is based on common labour costs and the ENR Building Index is based on the costs of building trades (bricklaying, carpentry and structural steel).

New York City Construction Cost Index 2007 to 2018 – New York Building Congress Report

New York City Construction Cost Index 2007 to 2018 – New York Building Congress Report

Starting with the base year at 98.75, from 2007 to the first quarter of 2009, the RLB cost index was higher than the ENR and New York CPI which both shared the same curve. In the first quarter of 2009, the indices intersected at a point for the first time (162.5), with the RLB index declining and the ENR indices rising over the RLB index up until 2018 (156.5). The ENR Construction Index was consistently higher than the ENR Building Index, up to 2018, with the exception of the first month of 2015 when both indices were briefly the same, interesting at a point (128.5) before the ENR Construction Index rose again over the ENR Building Index. All three construction indices were way higher than the CPI as from the last quarter of 2012, deviating by a wider margin with each successive year.

New York City – Global Cost Comparison (New York Building Congress Report 2018)

As at February 2019, New York was the most expensive city in the world to build luxury and prestigious office buildings, with these of type of offices going at $565 per square foot. In second, third and fourth place was London ($465), Hong Kong ($420) and Sydney ($340) respectively. New York was also the most expensive city in the world to build luxury hotels at $600 per square foot. In second, third and fourth place was Hong Kong ($520), London ($450) and Sydney ($400) respectively.

In retail construction, London was the most expensive place to build in the world at $600 per square foot. New York was the second most expensive to build at $420 per square foot. In third and fourth place was Hong Kong ($340) and Sydney ($275) respectively.

In multi-family residential construction, London was the most expensive to build at $530 per square foot, followed by Hong Kong at $520 per square foot. In third and fourth place was New York at $375/ft2 and Sydney at $365/ft2 respectively.

New York City – Global Cost Comparison (New York Building Congress Report 2018) (2)

New York City – Global Cost Comparison (New York Building Congress Report 2018) (2)

New York City – National Cost Comparison (New York Building Congress Report 2018)

As at February 2019, New York was the most expensive city in the USA to build office and retail properties. It was the second most expensive city to build hotels and K-12 educational facilities. New York was the third most expensive city in the USA to build multi-family residential buildings.

Multi-family residential construction in New York was the third most expensive in the USA, at $440 per square foot. San Francisco was the most expensive at $500 per square foot. In second place was Chicago at $460 per square foot, followed by Los Angeles at $380 per square foot. In fourth place was Boston and Washington DC at $370 per square foot. Denver came in at $275 per square foot.

Office construction in New York was the most expensive in the USA, at $600 per square foot, followed by Boston at $475 per square foot, and Chicago at $450 per square foot. In fourth place was Washington DC at $415 per square foot, followed by Los Angeles at $385 per square foot. In sixth place was San Francisco at $375 per square foot, followed by Denver at $290 per square foot.

Retail construction in New York was the most expensive in the USA, at $470 per square foot, followed by San Francisco at $415 per square foot. In third place was Los Angeles at $400 per square foot, followed by Chicago at $375 per square foot. In fifth place was Boston and Washington DC tied at $365 per square foot.  Denver came in at $230 per square foot.

Hotel construction in New York was the second most expensive in the USA, at $650 per square foot, resembling San Francisco. Chicago was the most expensive city to build a hotel at $663 per square foot. In third place was Boston at $575 per square foot, followed by Los Angeles and Washington DC at $550 per square foot. Denver came in at $300 per square foot.

New York City – National Cost Comparison (New York Building Congress Report 2018)

New York City – National Cost Comparison (New York Building Congress Report 2018)

New Building Filings in New York 2008 to 2020 (REBNY)

The graph below shows the number of proposed projects (building plans) filed with the NYC Department of Buildings from 2008 to 2020, compiled by REBNY (Real Estate Board of New York). A building filing is an application for a building permit. In 2008, about 1,350 building plans were filed in New York. This was followed by a steep decline in the number of project submissions in 2009 caused by the Global Economic Crisis (2007 to 2009) triggered by a crash in the US housing market. House prices shot up the roof as mortgage lenders relaxed loan eligibility requirements, extending credit to unqualified people at low-interest rates and increasing demand in the market. This lending practice worked as house prices rose, but it would lead to a financial crisis as demand fell in 2007, with house prices slumping and interest rates rising.

REBNY New Building Filings in New York 2008 to 2020 (REBNY)

REBNY New Building Filings in New York 2008 to 2020 (REBNY)

The housing market crash can be seen on the chart as the number of new building plans filed with the NYC Department of Buildings fell sharply to 750 in 2009. The sharp decline continued into 2010 as the number of new building filings fell to 400, a record low within the 12-year span.

In 2011, new building filings increased for the first time to 650, taking a sharp upward trajectory until 2014 which registered a record high of 3200 within the 12-year span. By 2013, the housing market had already recovered as 1350 filings were made, resembling the 2008 figures.

After reaching the peak value (3200) in 2014, the number of building plans submitted for approval in New York fell sharply to 1900 in 2015. The decline continued albeit on a medium slope up to 2017 which registered 1450 filings. The number remained stable in 2018, and then climbed up a gentle slope to 1600 filings in 2019. The number of submissions decreased in 2020 to 1250, which was a result of the Covid-19 pandemic.

Multi-Family Residential Dwelling Filings in New York 2008 to 2020 (REBNY)

The graph below shows the number of building plans (quarterly filings) submitted for multi-family residential buildings in the City of New York. Building plan submissions for multi-family residential buildings are compared against the total number of multi-dwelling units (MDUs) which are the living units inside the residential building/block. The number of quarterly building filings and MDUs are for the 2008 to 2020 period.

REBNY Multi-Family Residential Dwelling Filings in New York 2008 to 2020 (REBNY)

REBNY Multi-Family Residential Dwelling Filings in New York 2008 to 2020 (REBNY)

There was a quarterly average of 2000 MDUs in 2008, 4250 MDUs in 2009, 2150 MDUs in 2010, 3750 MDUs in 2011, 4000 MDUs in 2012, 7500 MDUs in 2013, 9750 MDUs in 2014, 7750 MDUs in 2015, 6750 MDUs in 2016, 7500 MDUs in 2017, 9400 MDUs in 2018, 7150 MDUs in 2019. The last quarter of 2020 ended with 7299 MDUs, an increase over 4679 MDUs in the 3rd quarter of 2020. There were 27,402 MDUs in 2020, which declined by 17.62% from the previous year.

New Building Filings in New York 2020 Quarterly Reports (REBNY)

In 2020, the number of building filings increased on a quarterly basis. The first quarter had 360 building submissions. The second quarter had 386 submissions, the third quarter had 441 submissions and the last quarter had 544 submissions, which was a 33.66% increase from the previous year.

REBNY New Building Filings in New York 2020 Quarterly Reports (REBNY)

REBNY New Building Filings in New York 2020 Quarterly Reports (REBNY)

New Building Filings in New York 2020 by Borough Quarterly Reports (REBNY)

New York City has 5 boroughs. In 2020, there were 169 building plans submitted in Queens representing a 52.25% increase from the previous year. Brooklyn had 146 building plans submitted with the NYC authorities, which was -11.45% decline from the previous year. Staten Island had 119 applications for building approval, representing a 52.56% increase from the previous year. The Bronx had 89 applications for building approval, representing a 36.92% increase from the previous year. Lastly, Manhattan had 21 building filings in 2020, which was a -4.55% decline from the previous year.

REBNY New Building Filings in New York 2020 by Borough Quarterly Reports (REBNY)

REBNY New Building Filings in New York 2020 by Borough Quarterly Reports (REBNY)

Major Projects in New York Boroughs 2020 (REBNY)

The largest projects in the State of New York by construction square foot are:

9,449 square feet GFA 6 storey mixed-use development with 5 MDUs on 372-St-Marks-Place, Brighton Heights in Staten Island.

166,679 square feet GFA 28 storey multi-family residential building on 620-W-153rd-St, Hamilton Heights in Manhattan.

407,328 square feet GFA 15 storey mixed-use development with MDUs, commercial and industrial space on 145-Wolcot-St, Red Hook in Brooklyn.

692,749 square feet GFA 43 storey multi-family residential building on 355-Exterior-St, Mott Haven in The Bronx.

842,240 square feet GFA 39 storey mixed-use development with 812 MDUs on 2-10-54th-Avenue, Long Island City in Queens.

RENBY Major Projects in New York Boroughs 2020 (REBNY)

RENBY Major Projects in New York Boroughs 2020 (REBNY)

New York Construction Costs Per Square Foot 2021 – Rider Levett Bucknall (RLB) Report

The RLB chart below shows the building costs per square foot in New York for residential, commercial, healthcare, educational and industrial buildings including parking. An average single-family home takes $310 to $610 per square foot to build depending on its quality. An average multi-family residential building takes $220 to $420 per square foot to build depending on its quality.

Rider Levett Bucknall Report Building Costs New York

Rider Levett Bucknall Report Building Costs New York

Rider Levett Bucknall Report Building Costs New York Bar Graphs

Rider Levett Bucknall Report Building Costs New York Bar Graphs

Rider Levett Bucknall (RLB) Report New York Construction Costs Per Square Foot 2021

Rider Levett Bucknall (RLB) Report New York Construction Costs Per Square Foot 2021

New York Construction Cost Index 2020 to 2021 – Rider Levett Bucknall (RLB) Report

The quarterly construction index in New York was as follows: The comparative cost index was 27,734 in April 2020, 28,008 in July 2020 and 28,112 in October 2020. The index was 28,542 and 29,507 in January and April of 2021 respectively. This was an annual change of 6.39% based on the month of April in the current and previous year. New York had the biggest change in the construction index of all major cities in the USA, followed by Washington DC, Portland, Chicago and Phoenix.

Rider Levett Bucknall (RLB) Report New York Construction Cost Index 2020 to 2021

Rider Levett Bucknall (RLB) Report New York Construction Cost Index 2020 to 2021

New York Quarterly Changes in the Cost of Construction 2020 to 2021 – Rider Levett Bucknall (RLB) Report

The second quarter of 2020 registered a 0.99% change in the construction cost index. The last quarter of 2020 registered a 0.37% change in the cost index. The first quarter of 2021 registered a 1.53% change in the cost index, and the second quarter of 2021 registered a 3.38% change in the cost index.

Rider Levett Bucknall (RLB) Report New York Construction Cost Index 2020 to 2021_B

Rider Levett Bucknall (RLB) Report New York Construction Cost Index 2020 to 2021_B

Building Costs Per Square Foot for Single Family Homes in the State of New York, USA

The quality of a house is determined by the type of materials used and the architectural design. In the United States, the following types of private dwellings are found in the market:

Class 1 – Luxury homes

Class 2 – Semi-luxury homes

Class 3 – Best standard homes

Class 4 – Good standard homes

Class 5 – Average standard homes

Class 6 – Minimum standard homes

In residential/housing projects, the construction cost per square foot is inversely proportional to the contract sum of the project. That means the construction cost per square foot will increase as the project value decreases, and the square foot cost will decrease as the project value increases. How is this? Builders’ pricing habits have a bearing on the square foot cost, which also includes the contractor’s profit and overheads. In a small building project, contractors have to factor in the risk of under-pricing, loss, profit erosion and being stuck on breakeven point. Thus, a higher profit margin is needed in this case to mitigate the risks. Larger projects with a huge contract sum are safe for contractors in terms of the amount of profit and cushion for risks. The building costs below were last updated in December 2020:

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in New York ranges from $365.58 per sqft to $560.42 per sqft, with the average being $431.44 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 1 Luxury Single Family Homes - State of New York Building Costs

Class 1 Luxury Single Family Homes – State of New York Building Costs

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in New York ranges from $222.19 per sqft to $340.58 per sqft, with the average being $262.20 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 Semi Luxury Single Family Homes - State of New York Building Costs

Class 2 Semi Luxury Single Family Homes – State of New York Building Costs

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in New York ranges from $143.63 per sqft to $218.16 per sqft, with the average being $168.16 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 Best Standard Single Family Homes - State of New York Building Costs

Class 3 Best Standard Single Family Homes – State of New York Building Costs

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in New York ranges from $104.82 per sqft to $160.75 per sqft, with the average being $123.71 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 Good Standard Single Family Homes - State of New York Building Costs

Class 4 Good Standard Single Family Homes – State of New York Building Costs

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in New York ranges from $85.09 per sqft to $130.31 per sqft, with the average being $100.33 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 Average Standard Single Family Homes - State of New York Building Costs

Class 5 Average Standard Single Family Homes – State of New York Building Costs

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in New York ranges from $67.11 per sqft to $102.86 per sqft, with the average being $79.16 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 Minimum Standard Single Family Homes - State of New York Building Costs

Class 6 Minimum Standard Single Family Homes – State of New York Building Costs

List of 22 Metropolitan Areas/Cities in New York – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 994 municipalities grouped into 22 metropolitan areas in the state of New York. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The building costs for single family homes in this post include all Bills of Quantities with the exception of HVAC installations. So the total costs include all construction trades, electrical installation, plumbing, built-in cupboards, plumbing fittings, local authority fees and permits, utility connections (water, gas, sewer etc), professional fees (architect, engineers etc.), contingency sum, contractor’s profit, attendance and overheads. The Location Factor represents the value of the local construction index, i.e. variation in the cost of labour, materials and supervision. In working out the building costs per square foot, the cost of land, existing infrastructure, land servicing, allowance for escalation, interest costs, parking and loose furniture are not included in the estimate. Ground conditions are assumed to be normal for estimating purposes, but for your own project, you have to factor in ground conditions, weather and climate because no two projects are the same.

The percentage deviation of building costs from the National Average for each metropolitan area in New York is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in New York:

New York Average 6% (6% more than X)

  1. Albany 7%                                           7
  2. Amityville 9%                                     9
  3. Batavia 1%                                          1
  4. Binghamton -2%                               -2
  5. Bronx 10%                                           10
  6. Brooklyn 7%                                       7
  7. Buffalo 1%                                          1
  8. Elmira -3%                                           -3
  9. Flushing 15%                                      15
  10. Garden City 15%                               15
  11. Hicksville 14%                                    14
  12. Ithaca -5%                                           -5
  13. Jamaica 14%                                       14
  14. Jamestown -7%                                                -7
  15. Kingston -4%                                      -4
  16. Long Island 30%                                                30
  17. Montauk 7%                                      7
  18. (Manhattan) 31%                             31
  19. New York City 31%                          31
  20. Newcomb 0%                                    0
  21. Niagara Falls -6%                              -6
  22. Plattsburgh -1%                                                -1

The Metropolitan Area List above as well as the Bar Graphs below indicate that Jamestown is the cheapest city to build a private home in the state of New York, and New York City and Manhattan are the most expensive cities to build a home. Building costs are -7% below the national average in Jamestown and 31% above the national average in New York and Manhattan.

Deviation of City Building Costs from National Average - State of New York Ascending Order

Deviation of City Building Costs from National Average – State of New York Ascending Order

Deviation of City Building Costs from National Average - State of New York

Deviation of City Building Costs from National Average – State of New York

Cheapest Places To Build in New York:

Jamestown is cheapest to place to build at -7% below the national average, followed by Niagara Falls at -6% below the national average. The third cheapest place to build a house is Ithaca at -5% below the national average, followed by Kingston at -4% below the national average. The fourth cheapest place to build is Elmira at -3% below the national average, followed by Binghamton at -2% below the national average.  The sixth cheapest place to build a home is Plattsburgh at -1% below the national average. Building costs in Newcomb are equal to the National Average. Construction costs in Batavia and Buffalo are 1% above the national average.

Expensive Places To Build in New York:

If anything between 5% and 10% is considered expensive, then there are six such metropolitan areas in the state of New York. Building a house in the city of New York is 6% more than the national average. Building a home in Albany, Brooklyn and Montauk is 7% above the national average. Building costs in Amityville are 9% above the national average. A newly built home in the Bronx will cost 10% above the national average.

More Expensive Places To Build in New York:

If anything between 10% and 15% is considered more expensive, then there are five metropolitan areas in state of New York. Building costs in Hicksville and Jamaica are 14% above the national average, whereas those in Flushing and Garden City are 15% above the national average.

Very Expensive Places To Build in New York:

The most expensive places to build a house in the state of New York are those 15% above the national average. New York City and Manhattan  are the most expensive places to build a house in the state at 31% above the national average, followed by Long Island at 30%.

New York State Average Costs:

Private home building costs in the state of New York are 6% above the national average. Building cost rates in the metropolitan areas of Albany, Brooklyn and Montauk are closer to the New York state average by a deviation of 1%. New York is one of the most expensive states to build a home in the United States.

 


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