2026 Construction Cost Report – Edition 2

The second edition of Beck’s 2026 Construction Cost Report delivers the insights owners and developers need as they plan for the remainder of the year. While construction costs remain relatively stable, material prices, labor constraints, energy volatility and broader economic uncertainty are creating new pressures that could influence costs, planning decisions and project timing.

From our updated construction escalation outlook to the growing focus on reinvestment, we break down what is changing and what it means for projects moving forward.

Inside this report, you’ll find:

• Current construction cost and escalation insights across key markets
• An overview of labor, material, energy and economic factors influencing pricing
• Market signals shaping demand across major building sectors
• Design insights on five questions owners should consider when evaluating reinvestment in an existing asset

Turning Market Complexity into Clarity

Beck combines architecture, construction and real-time market data to help clients make informed decisions early, when flexibility is highest, and the opportunity to manage risk is greatest.

This Cost Report provides clarity in a changing construction environment. It supports early planning, validates assumptions and helps owners evaluate where and how to invest as decisions move forward.

Key Takeaways from the second 2026 Cost Report

• Market Outlook: Construction demand remains healthy, while material prices, labor constraints, energy volatility and economic uncertainty continue to shape market conditions.
• Construction Escalation: Beck’s 2026 construction escalation outlook is 4.1%–4.6%, with costs expected to rise more quickly in the second half of the year.
• Sector Activity: Demand remains strong in sectors such as data centers, healthcare, education and infrastructure, while office and multifamily activity varies by market.
• Design Insights: Five questions can help owners evaluate whether reinvestment in an existing building can create long-term value and a competitive asset.

Download the report to explore the data and insights shaping construction costs and investment decisions through the remainder of 2026.