US Tops Global Ranking of World’s Most Expensive Cities to Build In
The US is currently the most expensive country to build in, with New York, San Francisco, and Boston all in the top five. This is exclusive insight, as inflation, labour shortages, and shifting global priorities continue to drive up construction costs.
Turner & Townsend’s 2024 International Construction Market Survey says that these American cities, some of the world’s most expensive cities to build in, have passed big cities like London and Zurich because of a lack of workers, high material costs, and complicated rules.
New York City, USA (above)
Table 1: Top 10 World’s Most Expensive Cities to Build In (2025)
| Rank | City | Country | Avg. Construction Cost (USD/m²) |
| #1 | New York | USA | $5,451 |
| #2 | San Francisco | USA | $5,200 |
| #3 | Geneva | Switzerland | $5,185 |
| #4 | Zurich | Switzerland | $5,160 |
| #5 | Boston | USA | $5,000 |
| #6 | London | UK | $4,943 |
| #7 | Munich | Germany | $4,880 |
| #8 | Hong Kong | China (SAR) | $4,789 |
| #9 | Los Angeles | USA | $4,680 |
| #10 | Doha | Qatar | $4600 |
Source: Turner & Townsend International Construction Market Survey 2024
Why US Cities Are Getting More Expensive
Below, we will explore some key reasons US construction costs are rising, making it one of the world’s most expensive cities to build in.
1. Labor Market Strain
In the US, the shortage of workers in the construction industry is still a major problem. Wages have increased dramatically due to several factors, including an ageing workforce, a lack of skilled labour, and competition from infrastructure, commercial, and residential projects.
2. Material Volatility
Although supply chains have stabilised since the pandemic, materials like steel, concrete, and electrical components remain costly due to global demand and local logistics disruptions.
3. Tight Regulations
Pre-construction timelines and costs are increased by the stringent and changing zoning laws, green building standards, and inspection processes characteristic of US cities.
Global Comparison: Most Affordable Cities to Build In
Cost increases are not occurring in all areas. Highly affordable construction environments are still available in emerging markets, particularly Asia and Africa.
Nairobi City, Kenya (Above)
Table 2: Selected Most Affordable Cities to Build In
| City | Country | Avg. Construction Cost (USD/m²) |
| Nairobi | Kenya | $790 |
| Johannesburg | South Africa | $900 |
| Bangkok | Thailand | $950 |
| Kuala Lumpur | Malaysia | $980 |
The above markets attract developers looking for lower capital outlay and quicker project turnaround; however, they may also involve risks such as infrastructure gaps, policy instability, or corruption.
Africa’s Strategic Opportunity
Africa is ready to grow, especially in the southern and eastern parts of the continent. Because building in places like Nairobi costs less, the region is considered a favourable place to invest.
The most important benefits for Africa are:
- A lot of workers for less money
- More people want infrastructure and housing.
- Incentives from regional governments for PPPs (Public-Private Partnerships).
But progress must be steady to overcome bureaucratic red tape, gaps in funding, and project delays. The Construction Frontier article discusses some of the top project management challenges that project managers face when building infrastructure across the continent.
The Petronas Tower in Kuala Lumpur, Malaysia (Above)
Insights for Construction Professionals
Whether you’re a contractor, developer, investor, or consultant and highly interested in investing in the world’s most expensive cities, to build in these cost trends holds actionable lessons:
Strategic Takeaways
- Adopt technology like BIM and modular construction to manage cost overruns.
- Diversify locations to include emerging markets for long-term portfolio resilience.
- Plan early, considering inflation, permitting delays, and potential workforce gaps.
Final Thought
Building costs in USA cities are rising, indicating a need for increased funding for innovative building techniques and careful project planning. Major US cities still cost a lot of money and are among the world’s most expensive cities to build in, but there are many opportunities in global markets where building is still cheap.
When you travel to high-cost places like New York or markets like Nairobi, it’s essential to ensure that your strategy fits the cost dynamics of each place.
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