Non-Residential Momentum and Infrastructure Demand Offset Cooling Sectors as Quarterly Cost Growth Reaches 1.28%
New Report: Q3 2026 Construction Cost Trends
RLB Releases Q3 2026 Construction Cost Report
Phoenix, AZ, Sept. 29, 2026 (GLOBE NEWSWIRE) — Rider Levett Bucknall (RLB), a leading independent global property and construction practice providing project management, cost management, project controls, estimating, and quantity surveying services, has released its Q3 2026 Quarterly Construction Cost Report (QCR). The report reveals that construction cost inflation rose to 1.28% for the quarter; a 0.19% increase over Q2 2026 and the highest quarterly increase recorded in two years. The year-over-year escalation rate now stands at 4.45%.
The latest findings highlight an increasingly polarized marketplace where robust non-residential activity, particularly across mission-critical facilities and public infrastructure, contrasts with softer commercial and residential pipelines.
“What we are seeing in our third quarter data is an industry navigating a complex, two-speed market,” said Paul Brussow, President of Rider Levett Bucknall North America. “While residential activity is cooling, non-residential construction remains exceptionally strong, with jobs expanding 2.8 percent over the past year. With construction unemployment sitting at just 3.1 percent, contractors are competing vigorously for skilled trades. In a market where cost pressures and labor constraints vary so sharply across regions, accurate, localized data is the only reliable way to safeguard project budgets.”
Report Highlights:
- National Index Movement: The RLB National Construction Cost Index rose to 292.28 in July 2026, advancing from 288.58 in April and 285.47 in January.
- Sector Performance: Total construction spending contracted 3.8% year-over-year, yet non-residential sectors saw significant targeted strength. A 57.2% annual surge in data center development drove private office construction figures, offsetting a 21.7% annual drop in manufacturing spending and a 6.5% decline in single-family residential activity.
- Megaproject Expansion: Total construction starts rose 25.6% in July, bolstered by multibillion-dollar projects including the $12.8 billion Project Jupiter Data Center in New Mexico, the $12.0 billion Micron Semiconductor facility in New York, and the $4.0 billion Amazon STACK Data Center in Louisiana.
- Input Price Spikes: Input prices rose 8.9% year-over-year, with acute inflation observed in tariff-impacted metals and petroleum goods, including liquid asphalt (+16.4%), diesel fuel (+77.8%), aluminum mill shapes (+27.3%), and steel mill products (+23.4%).
- Upstream Headwinds: The Architecture Billings Index fell to 46.6 in July, reflecting ongoing softening in design contract signings that warrants strategic planning for 2027 project pipelines.
To read the complete Q3 2026 Quarterly Construction Cost Report, visit rlb.com.
About Rider Levett Bucknall (RLB)
With a network that covers the globe and a heritage spanning over two centuries, Rider Levett Bucknall is a leading independent organization in cost management and quantity surveying, project management, advisory services, sustainability services, and built asset services. Rider Levett Bucknall’s North American practice has offices in over 30 cities across North America, including Austin, Boston, Calgary, Chicago, Dallas, Denver, Hilo, Honolulu, Las Vegas, Los Angeles, Maui, Miami, Minneapolis, Nashville, New York, Phoenix, Portland, San Francisco, Seattle, Toronto, Tucson, Waimea, and Washington, D.C. With more than 4,500 employees worldwide, Rider Levett Bucknall brings unparalleled value and service to its prestigious group of clients through its robust experience and high-level expertise. The firm enjoys a professional heritage that spans over 240 years, and it continues to be a global leader in the construction industry throughout the Americas, Africa, Asia, Europe, the Middle East, and Oceania.
For more information, visit www.rlb.com, and for the latest company news and construction cost trends, follow the firm on LinkedIn.
Attachments
- New Report: Q3 2026 Construction Cost Trends
- RLB Releases Q3 2026 Construction Cost Report
CONTACT: Lisa Bankston Rider Levett Bucknall [email protected]
