The results of professional services company Turner & Townsend's 2018 International Construction Market Survey reveal construction costs in New York City remained the highest in the world during 2017 with an average cost of $362 per square foot, according to www.constructiondive.com. Construction costs in New York City increased 3.5 percent during 2017 compared with 2016 costs, and construction costs are expected to rise an additional 3.5 percent during 2018.
The average hourly construction wage reported for New York City was $98.30 based on union wages; the New York City wage is second only to the $104 per hour wage construction workers in Zurich, Switzerland, earn. New York City's high construction wages are an extreme example of increasing construction wages throughout the U.S. Nationwide, the average hourly construction wage has increased to $29.63, which is about 10 percent higher than all other nonfarm U.S. industries. Construction industry employers have increased wages to attract new workers; some employers are even offering signing bonuses to skilled workers ranging from a few hundred dollars to $3,000.
Increasing wages offers a temporary solution to construction industry employers that are seeking workers, but a long-term solution to the labor shortage will require attracting young people to the industry. According to a National Association of Home Builders survey, most young people aren't interested in jobs that are physically demanding. In addition, high school students routinely are steered toward earning traditional four-year college degrees rather than attending trade school or entering the workforce directly. Some industry employers are taking steps to educate young people about the technology being used for construction work in an effort to make the industry a more attractive career choice.
