Construction Material Prices 2026: Which Costs Are Rising and Which Are Falling
By Virginia Viadas
Not all construction materials are moving in the same direction in 2026. While metals post double-digit increases under tariff pressure, some commodities are actually getting cheaper. Here is the verified breakdown every buyer, estimator, and supplier should have on hand.
Rising: metals lead the surge
| Material | Price trend 2026 | Driver |
|---|---|---|
| Copper wire & cable | +22% to +36% YoY | Tariffs + data center demand |
| Aluminum | +30% to +33% YoY | 50% tariffs |
| Steel / fabricated metal | +63% since 2020 | Tariffs, domestic pricing power |
| Electrical switchgear | Lead times of 2–4 years | AI data center competition |
Annualized input price spikes ran at 12.6% through the first two months of the year, and ConstructConnect warns the industry is in "early innings" of material price escalation, drawing comparisons to 2018-2019 when 25% tariffs drove material prices up as much as 8% — noting current trade policy is far more aggressive.
Falling or stable: relief in wood and concrete
Softwood lumber prices remain well below last year's levels, and ready-mix concrete prices have softened, likely reflecting stagnant construction spending, according to NAHB analysis of BLS data. Broad commodity benchmarks measured by the CRB Index are up a moderate 2.4 percent over the past year — meaning the pain is concentrated, not universal.
Why domestic prices rise even without imports
A key dynamic buyers often miss: tariffs impact pricing decisions on domestically produced products, not just imports — when only 10-20% of products face tariffs, domestic producers adjust prices across the remaining 80-90%. This is why fixed-price contracts without escalation clauses have become a major risk: contractors operating under fixed-price agreements bear the full impact of tariff-related cost pressures, often resulting in project delays or redesigns.
How buyers are adapting
Firms are prioritizing increased US sourcing, cloud-based supply chain visibility, and formal indexed pricing tied to published cost benchmarks, while mid-market builders increasingly write tariff-adjustment clauses into contracts to pass increases to project owners. Estimating practices are shifting too: a project estimated with static prices from late 2025 is likely underpriced before it breaks ground, given input costs up more than 43% since early 2020.
Methodology and sources
Data from U.S. Bureau of Labor Statistics (PPI), NAHB, Deloitte, JLL Materials Report, ConstructConnect, and Construction Analytics. Updated July 2026.
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