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Construction Costs Remain High in 2026

June 2, 2026

2 min read

Key Takeaways

Construction costs expected to stay high through 2026.
Data centers and infrastructure drive growth.
Labor shortages and material escalation impact budgets and schedules.

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Strategic Implications

The ongoing labor shortages and material escalation may indicate a shift in the commercial construction market, with companies needing to adapt to changing conditions. The strong demand for data centers and infrastructure suggests a growing need for specialized construction services, which could benefit companies that can deliver these projects efficiently.

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What Happened

Strong Demand and Rising Pressure in Commercial Construction

The commercial construction market continues to show resilience in 2026, driven by strong demand for data centers, advanced manufacturing, and infrastructure. However, labor shortages, material escalation, and supply chain uncertainty are putting pressure on budgets and schedules. According to Design Collaborative’s Chief Cost Estimator Thad Berkes, companies should expect projects to be shaped by persistent escalation and labor shortages, and should be disciplined during budgeting, design, and preconstruction. This article was first reported by Building Design + Construction.

Source

Companies Mentioned