In today’s construction news, read about how the United States of America continues to keep a solid hold on the top ranks of the most costly places to develop, which account for 99 global cities’ construction markets. On the other hand, the Santa Clara Valley Transportation Authority (VTA), California Department of Transportation (Caltrans), and local leaders celebrated the groundbreaking of the long-awaited U.S. 101/State Route 25 Interchange Upgrade Project on May 25, 2025. This project is intended to reduce traffic congestion, enhance safety, and improve connectivity between South County residents and employment opportunities, educational institutions, and other necessities. Lastly, the paving project that is currently taking place on United States Highway 287 to the northwest of Fort Collins is right now underway, and if Wyoming is your destination, you may want to change your route at this time.
US Owns Are the Most Expensive Places in the World to Build
Original Source: US cities most expensive places to build globally
International volatility and deglobalization are offering construction possibilities in several markets as countries invest in industry and defense to secure supply chains.
A new Turner & Townsend analysis shows that New York City and San Francisco have the highest global building prices at US$5,744 and US$5,504 per m2.
Swiss cities and London round out the top five most costly places to construct due to political and economic stability in Western Europe and the UK.
72 percent of regions report skilled labor shortages as growing wages cause worldwide construction cost inflation to reach 3.8 percent in 2025 and 4.0 percent in 2026.
The worldwide construction business is resilient to deglobalization and geopolitical uncertainty thanks to flexible models developed over the previous half-decade that can better manage costs and programs amid disruptions.
Turner & Townsend’s 2025 global construction industry intelligence study shows some construction sectors are benefiting from economic challenges. Investment in stable locations and long-standing markets raises costs, whereas countries near-shore manufacturing and building local supply networks see construction booms.
America tops this poll of 99 global cities’ construction markets as the most expensive place to develop. The top ten include five US cities. New York leads at US$5,744 per m2, followed by San Francisco at US$5,504. Chicago is fifth (US$4,695), Los Angeles sixth (US$4,786), and Philadelphia tenth (US$4,604).
High US construction labor expenditures, averaging US$76 per hour and peaking to US$131.4 per hour in New York, contribute to the costs. Mechanical, engineering, and plumbing trade shortages in 87% of North American markets are fueling this.
Demand for skilled labor exceeds supply worldwide, worsened by migration restrictions in many places. Seventy-one of 99 markets in the survey reflect a skills deficit, which is keeping average construction inflation over target at 3.8 percent in 2025 and 4.0 percent in 2026.
Zurich, Geneva, and London rank third, fourth, and fifth in cost (US$5,386 per m2, US$5,386 and US$5,385). In addition to rising wages in the US, robust construction demand in Western Europe and the UK keeps costs high as global investment seeks regional stability and domestic governments advance industrial and defense capacities.
The final country with cities in the top 10 is Japan, whose data center sector and other high-tech businesses are growing. Tokyo is the eighth most expensive market at US$4,647 per m2, joined by four other Japanese cities in the top 15 (Sapporo, Osaka, Hiroshima, and Fukuoka), making Japan the second most expensive country for construction globally at US$4,514 per m2.
Japan is one of several Asian markets benefiting from deglobalization-era self-sufficiency. Building demand is rising in manufacturing hubs like Vietnam, India, and Malaysia because of cheap building costs—US$1,147 per m² in Hanoi, US$1,168 in Ho Chi Minh City, and US$723 in Mumbai.
Turner & Townsend Global Real Estate Managing Director Neil Bullen said:
Global interests and challenges are changing. Investment flows are altering due to geopolitical tensions and polarization. Although uncertainty is reducing confidence in certain locations, it is offering opportunity in others.
“Whether businesses are making tactical moves to reorient supply chains or pivot to invest in high-growth sectors like defense, advanced manufacturing, and data centers, construction remains crucial to global resilience and growth.”
Despite rising prices and construction activity, a global skills deficit could slow growth. As migration hurdles rise, international labor may become less mobile, further decreasing talent pools.
“Agility and vigilance are needed to deliver unprecedented scale and complexity projects. Clients should be open to new ideas, from spending more in local skill training to piloting new AI technologies or integrating digital solutions across a project.
U.S. 101/SR 25 Interchange Upgrade Project Begins Construction
Original Source: Construction Begins On U.S. 101/SR 25 Interchange Upgrade
On May 25, 2025, the Santa Clara Valley Transportation Authority (VTA), Caltrans, and local leaders broke ground on the long-awaited U.S. 101/State Route 25 Interchange Upgrade Project to reduce congestion, improve safety, and connect South County residents to jobs, schools, and services.
Contractor DeSilva Gates Construction is from Dublin, California.
“We are not just improving roads—we are creating lasting connections between Morgan Hill, Gilroy, and San Benito County neighbors, ensuring access to opportunity, future growth, and regional success,” said Campbell mayor and VTA board chair Sergio Lopez.
VTA, CalTrans, Santa Clara, and San Benito county representatives attended the celebration in Gilroy, near the construction site.
Santa Clara County’s interchange south of Gilroy is over 30 years old. Due to growing commuting, business, and recreational traffic growth, it cannot handle traffic needs. Due to these conditions and high travel speeds, interchange accidents and traffic delays on southbound U.S. 101 are higher than typical.
Project Parts
The first phase:
The U.S. 101/SR 25 interchange should be rebuilt north of the current interchange.
Replace the SR 25 two-lane overcrossing with a four-lane one across U.S. 101.
To reduce traffic delays on U.S. 101, lengthen the southbound off-ramp at SR 25.
Upgrade northbound U.S. 101 ramps for exits and merges.
Install new ramp intersection traffic signals to increase throughput.
Build a two-way bikeway between Castro Valley Road and southbound U.S. 101/SR 25.
Project goals include improving connectivity between U.S. 101 and SR 25, improving traffic operations with ramp storage and signals, reducing ramp backups onto southbound U.S. 101 and improving access for safer merges, and supporting the overall future interchange reconfiguration, including widening and State Route 152 improvements.
Future interchange upgrades will be scheduled as funding becomes available. Future renovations include a partial cloverleaf or diamond ramp intersection with potential direct connectors, frontage roads for local and bicycle access, and grade separating SR 25 from the Union Pacific Railroad east of U.S. 101.
This $136 million project is funded by local sales tax, state transportation, and federal funds. VTA has collaborated with the state transportation agency on various projects.
This project is a joint investment in regional safety, operational improvements, mobility, and the future. Caltrans District 4 Bay Area director Dina El-Tawansy said $59 million in SB 1 construction money and VTA’s Measure B support are developing more than infrastructure—they’re building regional linkages.
SB 1 has allocated $5 billion annually to transportation improvements since 2017. State and local agencies receive funding. Road projects, particularly SB 1-funded ones, move faster when money is available.
Construction on U.S. 287 North of Fort Collins Limits Traffic to One Lane
Original Source: Construction on U.S. 287 north of Fort Collins reduces all traffic to a single lane
A paving project on U.S. Highway 287 northwest of Fort Collins may need you to change your route to Wyoming.
About a mile south of Owl Canyon Road is affected by the July 7 work.
Milling, striping, signage, and delineators are planned. The Colorado Department of Transportation expects completion in late July.
Detouring may not help you reach Red Feather Lakes or other Larimer County destinations north of the roadwork.
A homeowner informed the Coloradoan on the first day of the project that backups extended to Red Feather Lakes Road, Larimer County Road 74E.
At 2:20 p.m. on July 7, a Google traffic map showed red and yellow traffic delays for at least 3 kilometers.
CDOT stated in a June 24 news release that traffic will be reduced to one lane during weekday work hours of 7 a.m. to 5 p.m. and projected delays of 15 minutes.
CDOT said traffic will alternate on the single lane.
In a June 24 news release, CDOT noted the project is a 10-year priority and a high safety concern.
“The project’s new striping will improve highway safety and clarity. In the announcement release, CDOT Regional Transportation Director Heather Paddock said the road will be safer, ride better, and be smoother.
Summary of today’s construction news
In summary, according to the findings of a new analysis by Turner & Townsend, the average construction expenses in New York City and San Francisco are the highest in the world, coming in at $5,744 and $5,504 per square meter, respectively. It is estimated that the global average construction cost inflation will be 3.8 percent in 2025 and 4.0 percent in 2026. This is due to the fact that wage costs are increasing, which means that 72 percent of regions are experiencing skilled labor shortages.
On the other hand, through the implementation of Senate Bill 1 (SB 1), around $5 billion has been allocated annually to various transportation projects since 2017. The state and local governments receive a portion of the funding that is provided by this. There is a correlation between the availability of funding and the speed with which road projects advance through the construction phases. This category includes projects that are partially supported by Senate Bill 1.
Lastly, construction on United States Highway 287, located northwest of Fort Collins, began on July 7 and is expected to continue until the end of July. The workdays are from seven in the morning until five in the afternoon, and traffic is confined to one lane that alternates.
