RLB North America Releases Q2 2026 Construction Cost Report

Rider Levett Bucknall has released its second quarter 2026 Quarterly Construction Cost Report, highlighting a period of strategic alignment and healthy stabilization across the North American construction market. Construction cost inflation has settled into a sustainable quarterly pace of approximately 1%, allowing developers to advance long-term capital investments with greater clarity.

RLB’s tracking shows an industry grounded in steady progress and structural strength. Driven by a major influx of data center developments, infrastructure assignments, healthcare facilities and educational construction, the national construction backlog indicator rose to 8.8 months this quarter. This robust pipeline provides a substantial runway of work for commercial and industrial contractors moving into the second half of the year.

“As we navigate localized transport and fuel pressures this quarter, our overarching outlook remains decisively optimistic,” stated Paul Brussow, president of Rider Levett Bucknall North America. “Contractors across all size categories continue to report high confidence, and by leveraging hyper-local intelligence alongside proactive project controls, owners and developers are successfully advancing their pipelines with strong cost control.”

Key trends from second quarter 2026

• A market of healthy realignment: Construction cost patterns show a healthy distribution rather than a broad market shift. Vibrant urban markets like Honolulu, Hawaii (5.9% annual change), Phoenix, Arizona (5.3%) and Miami, Florida (5%) continue to lead cost growth. Meanwhile, key metropolitan zones have established stable, predictable pricing baselines, including Chicago, Illinois at 1.4%, Dallas, Texas at 3.9% and Washington, D.C. at 4%.
• Navigating logistics volatility: Supply-side updates indicate that project budget pressures stem from rising transportation and fuel costs rather than broader material or labor shortages. The re-routing of global shipping lanes due to conflicts in the Middle East has placed direct upward pressure on energy prices. RLB notes that while these logistical shifts require close observation to avoid localized transit delays, overall contractor sentiment remains positive across all sectors.

Strategic outlook
RLB emphasizes that broad national averages can mask localized market behaviors. To achieve success in a market defined by regional variation, owners and developers must utilize precise, hyper-local intelligence. By optimizing procurement strategies early, building flexible cost models to isolate logistical risks and incorporating robust project controls, developers can successfully protect project margins.

The full report can be accessed at 2026 Quarterly Construction Cost Report.