09/30/2026
Construction costs are moving faster than inflation again.
Over the past year, new nonresidential building construction costs are up 5.3%, compared with 3.4% CPI inflation.
For developers, that gap matters. Materials like steel, aluminum, copper and fuel are driving real pressure into project budgets, especially on retail shells, QSRs and shopping center development.
A few of the biggest year over year moves:
• Diesel fuel +77.8%
• Copper base scrap +43.0%
• Aluminum mill shapes +27.3%
There are a few bright spots, but the larger takeaway is simple: today’s projects need to be underwritten using today’s construction costs, not last year’s assumptions.
We broke down the latest numbers, trends and September 2026 outlook in the infographic below.