Building in America Just Got Pricier — But We Cracked the Code


Construction costs are smashing records nationwide. In New York City, the average cost to build now tops $534 per square foot — the highest in the world. San Francisco isn’t far behind at $512, with Los Angeles hitting $445. The culprits? Persistent labor shortages, inflationary material pricing, and supply chain disruption still reverberating from post-pandemic trade volatility.

Developers across the country are feeling the squeeze. According to Turner & Townsend, nearly 50% of industry professionals expect supply chain conditions to worsen over the next 12 months, with construction cost inflation climbing to 5% in 2025 in some markets.

But while most are struggling to keep up, we’ve taken a different route — and it’s working.

At Elevation Development Services, we decided to flip the script. Instead of relying on the traditional (and increasingly fragile) web of third-party consultants and GC markups, we brought everything in-house — and it’s been a game changer. By combining end-to-end project delivery with our proprietary AI platform, we manage everything from entitlements to procurement to vertical construction under one roof.

Here’s how we’re doing it:

  1. Procurement in our control: We go direct to manufacturers for key materials, skipping distributor markups and securing bulk contracts nationally.
  2. Construction under our umbrella: Our internal teams run the build process start to finish — no markup stacking from GCs or construction managers.
  3. AI-powered efficiency: Our tech platform optimizes schedules, reduces friction across trades, and flags cost overages before they become problems.
  4. National subcontractor network: Our traveling trade crews allow us to deploy labor where it’s needed most, smoothing out regional shortages and keeping quality high.

The result? In select markets, we’ve cut construction costs by up to 35% — not through value engineering, but through real vertical integration.

➥ The Takeaway

Yes, building in America is more expensive than ever — but it doesn’t have to be. The future belongs to developers who own their supply chain, leverage tech, and build smarter. We’re not waiting for the industry to catch up. We’re already there.

Learn more: www.elevationredev.com

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