The March 2026 KMI Construction Cost Report indicates a relatively stable cost environment with modest overall increases, as building costs rose 0.30% and total construction costs increased 0.20%, driven primarily by a 0.60% rise in material costs while labor remained flat at 0.00%. Material pricing showed mixed movement, with structural steel increasing notably (+2.60%) and gypsum board slightly up (+0.20%), while plywood (-2.30%), lumber (-0.50%), and cement (-0.50%) declined, reflecting ongoing volatility within the materials market. Despite these fluctuations, the broader trend remains upward, reinforcing continued escalation pressures. Regionally, average commercial construction costs vary significantly by city, ranging from approximately $188/SF in markets like Dallas and Pensacola to over $285/SF in New York, highlighting geographic cost disparities. Overall, the report emphasizes that while the market appears controlled in the short term, underlying material variability and procurement timing continue to be key drivers of cost risk and budgeting uncertainty.
Click on the link above to view the latest cost data for March 2026.