What are NYC construction costs looking like in 2024? (per-square-foot)

[Joshua Mitchell]

I'm seeking opinions and examples of per-square-foot costs for constructing new multi-family developments in NYC. We are building a 10-unit semi-luxury condominium in Brooklyn. I have been estimated at somewhere around $300/sqft, this was around a year ago. Any insight would be greatly appreciated. Thank you.

[Eric Hajdu]

Hey Joshua,

I'm currently in the throws of a development project in Brooklyn, and the $300 a sf model is a little light, especially if you plan on decent finishes.  You are correct, that this has long been the conventional figure used to estimate cost for buildable sf in NYC.  Also, I'm not sure if you are demoing an existing structure, if the structure is freestanding, etc, but this will obviously greatly affect your overall budget.

For our project, most of the material prices are in line with expectations, but where we've been shocked with recent increases is the soft cost.  Our insurance policy for the project alone was well over $100k.  Lawyers, engineer, architect, expeditor, surveyors, etc pile on the fees quickly.  We also had to negotiate access agreements with both adjoining neighbors, which added nearly another $100k.

Best of luck in your venture, feel free to contact me directly with any questions or if you would like me to pass along any of my resources.  

[Joshua Mitchell]

Thank you very much! Luckily we are working with an empty lot. Our pockets are not deep but we have full ownership of the land. We are in pre-development, and getting a clear picture of these initial soft costs has not been straightforward so I greatly appreciate the information.