New report finds San Francisco Bay Area is most expensive place in the world to build

SAN FRANCISCO (KGO) -- According to a new report, the Bay Area is the most expensive place in the world to build.

The UK-based consultant Turner and Townsend says the average construction cost in the Bay Area is $417 per square foot, surpassing New York's average of $368 per square foot.

The cost for commercial development, including apartments, went up by 5 percent in the Bay Area last year, meaning we're tied with Seattle for the "fastest growing market" in North America.

The report, International Construction Market Survey, pins the blame on a few factors, including high demand, labor shortages, steel tariffs and rapid economic growth.