How Insurance Costs Make NYC Construction So Expensive

The high cost of construction in New York City is investigated, focusing on factors beyond just labor costs. Elizabeth Crowley and Michael Capasso explain how insurance costs, particularly due to New York's scaffold law, contribute significantly to project expenses, often exceeding costs in other states by 500%. Delays caused by design errors, lengthy approval processes, and environmental reviews further inflate expenses, with indirect overhead costs accumulating during these periods. The discussion also addresses the physical constraints of building in a dense urban environment like New York, including material transportation challenges and subsurface conditions. While AI and technological advancements offer potential for increased efficiency, the immediate focus is on reforming insurance practices and streamlining bureaucratic processes to reduce construction costs.