The Reserve Bank predicts that the entire cost of rebuilding will be roughly $40 billion (in 2015 USD), with slightly more than $16 billion for residential and commercial development and around $7 billion for infrastructure. It also estimates that GDP will be lower in 2016 than it would have been otherwise due to loss of production caused by construction delays and disruption. The figure includes spending on public works such as schools, hospitals, roads, and rails as well as new homes, businesses, and government offices. It does not include the value of lost or damaged property or the financial impact of psychological damage to residents. After the 1995 earthquake in Kobe, Japan, the total cost was estimated at $87 billion. In 2008, the city rebuilt more cheaply using concrete frames instead of brick buildings, which reduced costs significantly. However, many older houses were destroyed and the overall quality of housing has declined because developers don't have to follow any building codes when constructing new homes. Christchurch is a relatively small city with only 1 million people so its economic impact was expected to be less than larger cities like Tokyo or San Francisco. However, the quake destroyed many buildings in the central business district, which had long been the heart of local commerce.