Construction Costs Surge Early 2026

Construction costs have surged at the beginning of 2026, with prices for both materials and labor sharply up. According to Bisnow, Associated Builders and Contractors (ABC) reported a 12.6% annualized increase in construction input costs during January and February, with nonresidential construction expenses rising 3.7% year-over-year. Overall construction costs are now 3.1% greater than the same point last year. Energy price hikes were a primary force, with natural gas prices up nearly 11% in a single month and crude petroleum up 2%. Read on to learn more: Link

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