The workers have higher salaries. The regulations, as you mentioned also play a big part. For something like a subway, geology comes into play, and I believe Manhattan is built on rock that is hard and therefore difficult and expensive to drill and dig through. I’m not sure how that compares to other cities. Also, when you’re digging underground, you need to make sure you don’t destroy other important infrastructure that’s already there. I’d imagine that New York’s density makes this very difficult.
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