Material prices have been hard to write down this year. By the time an estimate is built, reviewed and sent, some of its numbers are already out of date. That is the main reason construction material cost articles go stale quickly, and why this one is dated. Everything below reflects data published through mid-November 2026, with each figure labeled by period.
What the price data shows
The Associated General Contractors analyzed Bureau of Labor Statistics producer price data and reported that inputs to new nonresidential construction rose 8.9% from August 2025 to August 2026. AGC attributed the increase to conflict in the Middle East and tariffs on key materials. A month later AGC’s October release put the September year-over-year figure at 11.9%, with increases spreading from fuel and metals into other goods and deliveries.
Earlier releases show the build-up. The July 2026 reading was 7.1%, and AGC noted that paving mixtures rose 6.6%, the fastest in three years, while construction plastics rose 5%. In the June data, diesel fuel at the producer level was still 65.8% above the prior year even after dropping 18.4% in the month. Aluminum, copper and steel prices were rising in that period as well.
| Period | Inputs to new nonresidential construction, year over year | Source |
|---|---|---|
| July 2026 | +7.1% | AGC analysis of BLS data |
| August 2026 | +8.9% | AGC analysis of BLS data |
| September 2026 | +11.9% | AGC release, October 15, 2026 |
Labor moved too. Average hourly earnings for production and nonsupervisory construction workers rose 5.0% over the same twelve months to August, against 3.3% for the private sector as a whole. Our post on labor cost estimating goes through that side.
What this does not tell you
A producer price index is a broad measure. It does not tell you what your steel supplier will charge next week or what rebar costs in your county. It is useful for direction and for escalation allowances. It is not a price list, so any single material needs a live quote.
It also mixes materials that behave differently. Metals, fuel and electrical gear have moved sharply, while some categories have been steadier. Skanska’s Summer 2026 report, for example, projected generator prices to rise 8% to 10% and HVAC equipment 10% to 12% in 2026, which is a different story from a commodity like concrete block. See HVAC equipment cost estimating for that.
How estimators are handling it
Three habits separate estimates that survive a volatile quarter from estimates that do not. The first is dating every material price and recording how long the quote is good for. The second is separating the materials with active price risk from the ones that are stable, so escalation is applied where it belongs and not as a blanket percentage. The third is stating the assumption on the estimate, for example that steel is priced at a quote dated October with a fixed validity period, and that anything bought after that date is excluded or carries an allowance.
The mechanics of escalation and how it differs from contingency are in how tariffs and material price changes affect estimates and the contingency guide.
Using cost data without getting caught by the date
Published cost databases lag the market. If you use one, apply the location factor and then adjust for time with a current index, as described in the guide to RSMeans and construction cost data. Then test the biggest lines against fresh supplier quotes. When a quote and the database disagree sharply, the quote is usually right.
Common questions
How much have construction material prices risen in 2026?
AGC reported inputs to new nonresidential construction up 8.9% year over year in August 2026 and 11.9% in September, based on producer price data. Individual materials vary a lot.
Is it safe to use last year’s unit costs?
Not without an adjustment. With input prices moving this fast, old unit costs understate current cost unless you escalate them and confirm key lines with quotes.
How often should material pricing be refreshed?
For volatile items such as metals, electrical gear and fuel-linked products, refresh at each bid. For stable items, a periodic review can do.
Pricing a project in this market
If you need an estimate priced against current quotes and clear assumptions, our cost estimation team can prepare it. We also handle the measurement behind it through quantity and material takeoffs, and our metals estimation covers steel scopes where price exposure is highest. Send your plans for a quote.