Construction Cost Insights Report Q1 2026
Produced in partnership with Building Design+Construction, the Construction Cost Insights Report uses Gordian’s RSMeans™ Data construction costs and internal expertise, along with perspectives from A/E/C industry leaders to evaluate the short-term and long-term cost trajectory of prominent construction materials.
The Q1 2026 report examines the state and movement of construction material costs as the new year ramps up, looks at the sectors that are booming and discusses procurement strategies the industry’s leading firms are adopting to reduce their financial risk.
Download the Q1 report for:
- Cost analysis of steel, lumber, copper and more of North America’s most common construction materials.
- The ripple effects of the labor shortage on wages and beyond.
- Proactive approaches to procurement to reduce lead times and lower costs.
Key Highlights
Core Material Costs Shifted Heading Into 2026
Many major construction materials — lumber and steel in particular — slipped in cost from Q4 2025 to Q1 2026, while year‑over‑year non‑metal materials like insulation surged over 19%. These shifts highlight mixed market behavior and ongoing volatility in specific sectors.
Labor Costs Rising but Still Below Pre‑COVID Levels
Labor costs now make up a higher share of total construction costs than at any time in the last four years, although still under pre‑pandemic levels. This labor‑driven cost pressure is critical for 2026 estimating, budgeting and project planning.
Material Trend Drivers: Supply, Demand & Global Disruptions
Structural steel began 2026 in a mild slump, copper saw nearly a 20% jump in late 2025 due to global supply interruptions, and lumber prices dipped as supply outpaced demand. These factors point to ongoing supply‑chain sensitivity and the potential for renewed price volatility as market conditions evolve.
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