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Last updated: 18 August 2026

Quick answer: Construction material prices have risen 7.2% on average over the past 12 months, but the increase is not even across categories. Diesel (+65.8%), aluminium (+52.4%) and insulation (+19%) have jumped the most. Concrete and lumber are up modestly (2% to 8%). Plastic pipe and drywall are flat or falling. A single blanket escalation number will misprice most estimates.

If your last bid felt tighter than it should have, it is not just you. Material costs have moved fast over the past 12 months, and the increases are not spread evenly. Some categories jumped by double digits, or more. Others barely budged, and a couple actually cooled off.

We pulled the numbers together so you can see exactly where the pressure is coming from. Here are the 10 cost lines that matter most on a residential job site, ranked by how far they have moved since this time last year.

Quick reference: material prices, 12-month change

• Diesel fuel — +65.8%

• Aluminium mill shapes — +52.4%

• Copper and brass mill shapes — +26.0%

• Steel mill products — +22.5%

• Insulation (incl. rigid foam) — +19%

• Iron and steel (broad category) — +17.6%

• Nonresidential inputs (blended average) — +7.2%

• Concrete and cement — +2% to +8%

• Lumber and plywood — +4.8%

• Gypsum (drywall) — essentially flat

• Plastic pipe and PVC — flat to slightly down

  
  

1. Diesel fuel: up 65.8%

The biggest mover on the list, and not a building material at all — but it touches every material on it. Delivery, plant and haulage costs all ride on diesel prices. Even when a supplier's sticker price holds steady, freight surcharges rarely do.

2. Aluminium mill shapes: up 52.4%

The biggest increase on any actual building material. Aluminium used in framing, siding, gutters, roofing panels and trim has been hit hardest by tariffs, and the rise shows up fast on any job with meaningful metal scope.

3. Copper and brass mill shapes: up 26.0%

Wiring, plumbing and HVAC components all lean on copper, and demand from data centre construction is squeezing supply further. Any project with real electrical or mechanical scope should expect this one to keep biting.

4. Steel mill products: up 22.5%

Structural steel, studs, rebar and connectors are all up sharply as tariffs on steel and aluminium sit as high as 50%. Larger contractors are locking in supply agreements instead of buying spot, which is worth considering on bigger jobs.

5. Insulation: up roughly 19%

This one catches a lot of estimators off guard. Fibreglass insulation has posted double-digit year-over-year growth for three straight quarters, and rigid foam board (EPS, XPS, polyiso) is tracking the same trend since it is priced off similar petrochemical inputs. If your last insulation line item is more than a few months old, it is already out of date.

6. Iron and steel (broad category): up 17.6%

This wider category, covering everything from fasteners to fabricated components, confirms the steel story is not isolated to mill products. It is a sector-wide increase.

7. Overall nonresidential construction inputs: up 7.2%

This is the blended average across all materials and labour-adjacent inputs. It is a useful benchmark: if your estimate is only escalating costs at this rate, you are likely underestimating your metal and insulation line items and overestimating some others.

8. Concrete and cement: up 2% to 8%, depending on the product

Concrete has not made headlines the way copper or aluminium has, but it has not stood still either. Ready-mix concrete is up roughly 2% year-over-year nationally, Portland cement around 3%, and concrete masonry units (block) closer to 7%. Some regions with tight cement supply, particularly parts of the Southeast, are seeing steeper jumps than the national average. It is a quiet increase, but concrete touches almost every job, so it compounds.

9. Lumber and plywood: up roughly 4.8%

Lumber has been the most unpredictable material on the list all year, swinging with mill closures, trade policy and housing demand. The year-over-year number looks tame next to steel and aluminium, but do not assume it stays that way through your next build cycle.

10. Plastic pipe, PVC and drywall: flat to slightly down

The genuine surprises. Plastic pipe systems like Wavin and other PVC products spiked hard back in 2021 and 2022, but pricing has cooled and drifted slightly negative over the past couple of years as resin costs eased. Gypsum has held steady too — a rare bit of good news for interior finish budgets. If your estimate is still carrying an escalation buffer on plastic pipe or drywall from a couple of years ago, you can likely bring it back down.

What this means for your next estimate

The takeaway is not "everything costs more." It is that costs are moving unevenly: sharply up on metals and insulation, moderately up on concrete and lumber, and flat to falling on plastics and drywall. A flat percentage bump applied across your whole estimate will get you in trouble on metal-heavy jobs and leave money on the table on interior and plumbing work.

The contractors managing this well are pricing categories separately, not applying one blanket escalation number, and updating their assumptions closer to bid day instead of relying on last quarter's numbers.

Why your pricing list matters more than your bid

Here is the part that gets overlooked. It does not matter how accurate your takeoff is if the prices behind it are stale. A perfectly measured quantity multiplied by a six-month-old unit cost still produces the wrong number, and on a job with heavy metal or insulation scope, that gap can be the difference between a profitable job and a break-even one.

A price list is not a "set it once" document in a market like this. Aluminium, copper and insulation are moving fast enough that a list updated last quarter is already out of step. The habit worth building is treating your pricing library the same way you treat your schedule: something you check and refresh before every bid, not something you set up once and forget.

That is exactly the kind of accuracy Assemble is built for. Store your materials and labour rates in one place, and every linked estimate updates the moment you update a price, so you are never bidding off numbers from last quarter. Catch the categories that are moving before they cost you the job, and bid with confidence even when the market will not hold still.

Protect your bid: put a validity window on every estimate

Prices move fast enough right now that an estimate handed out today can be wrong in a matter of weeks, not months. Locking in a validity period is not about being difficult with a client. It is what keeps a slow-moving decision from becoming your problem instead of theirs.

A simple line at the bottom of every estimate does the job:

This estimate is valid for 90 days (3 months) from the date of issue. Prices are based on current material costs and are subject to change if the estimate is accepted after this period.

A few things worth keeping in mind when you set that window:

• Match the window to the volatility. If a job leans heavily on aluminium, copper or insulation, 90 days is generous. Some contractors are pulling that down to 30 to 60 days on metal-heavy jobs given how fast those categories are moving.

• Put it on every estimate, not just the big ones. The habit only works if it is consistent. A missed clause on one job is the one that costs you.

• Re-quote instead of honouring an expired price. If a client comes back after the window closes, treat it as a new estimate against current numbers, not the old one.

  
  

Frequently asked questions

How much have construction material prices gone up in 2026?

Overall nonresidential construction input prices are up 7.2% year-over-year as of mid-2026, according to AGC's analysis of BLS Producer Price Index data. The increase is uneven: metals and insulation are up sharply, concrete and lumber are up modestly, and plastics and drywall are close to flat.

Which construction material has gone up the most in price?

Diesel fuel (+65.8%) and aluminum mill shapes (+52.4%) have seen the largest 12-month increases, followed by copper and brass mill shapes (+26.0%) and steel mill products (+22.5%).

Has concrete gone up in price in 2026?

Yes, but modestly compared to metals. Ready-mix concrete is up roughly 2% year-over-year nationally, Portland cement around 3%, and concrete masonry units (block) closer to 7%. Some regions with tight cement supply are seeing steeper increases.

Have plastic pipe and PVC prices gone up?

No, not currently. Plastic construction products, including PVC and plastic pipe systems like Wavin, spiked in 2021 and 2022 but have since cooled and are flat to slightly down over the past year as resin costs eased.

How long should a construction estimate stay valid?

Most contractors use a 60 to 90 day validity window, with shorter windows of 30 to 60 days recommended for estimates heavy in fast-moving materials like aluminum, copper or insulation. The estimate should state this period explicitly and be re-quoted at current prices if accepted after it expires.

Ready to price your next job with current numbers instead of last quarter's guesswork? Start your 14-day free trial of Assemble and build your estimate on your updated price list.

Sources: Associated General Contractors of America (AGC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data, June and July 2026 releases; Engineering News-Record; Gordian RSMeans insulation and concrete cost data, Q2 2026; Buildermuse concrete pricing analysis, 2026.