Nonresidential construction cost escalation trended toward normal levels in 2025, easing industry anxiety over U.S. emergency tariffs that had driven building costs significantly higher.

According to data published in the Beck Group’s latest construction cost report, nonresidential construction costs increased about 5% last year, which falls within the range of normal cost escalation. In 2026, construction cost inputs are expected to trend close to last year’s level, pending no major hiccups, such as a prolonged Middle East conflict.

Reprinted courtesy of Greg O'Bryan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.