Understanding Current Construction Costs: What 2025–2026 Homeowners Should Know

A Clearer Look at Today’s Construction Pricing 

As 2025 unfolds, the construction industry continues to experience steady cost increases in both materials and labor. While price spikes are no longer as extreme as they were during the 2021–2022 volatility, the most recent NAHB data shows that material costs and construction services are still trending upward — and in some cases, rising faster than expected. Many homeowners are feeling this uncertainty, and we’ve been seeing it reflected in our own conversations and project pricing. 

Why Prices Are Shifting 

The NAHB report highlights increases across several categories: 

• Input goods for residential construction are up, driven largely by steel, concrete and equipment-related materials. 
• Energy costs have stabilized but remain above pre-pandemic baselines. 
• Labor and construction services continue to rise due to nationwide shortages of skilled trades. 
• Supply chain improvements have helped, but certain lead times remain unpredictable. 

These shifts impact nearly every builder, designer, tradesperson and supplier — which is why subs and vendors are adjusting their pricing in ways many homeowners are now noticing. 

What We’re Seeing at Reliance 

Over the last several months, we’ve observed: 

• Subcontractor bids coming in higher than historical averages 
• Material quotes adjusting more frequently 
• Greater spread between the “lowest” and “highest” bids 
• Increased variation based on product availability 

This doesn’t mean projects are unmanageable — but it does mean that budgets must be treated with care, flexibility and transparency. 

How This Affects Your Project 

If you’re planning a renovation, rebuild or addition, here’s what to expect in the current market: 

• Budgets may need modest adjustments to align with current pricing 
• Material selections matter more, especially for long-lead products 
• Early and realistic budgeting helps avoid mid-project surprises 
• Clear communication is essential as pricing updates occur 
• Contingency planning is key for navigating volatility 

None of these are red flags — they’re simply the new reality of building responsibly in today’s market. 

Our Approach: Diligence, Clarity and Care 

At Reliance, rising prices are never passed along without scrutiny. 
We continue to: 

• Review bids carefully for accuracy 
• Lean on long-term, trusted trade relationships 
• Analyze material options for both value and durability 
• Update budgets early and honestly 
• Prioritize clarity through every phase of Consult–Design–Build 

Our goal is always the same: to help you plan confidently and build a home that feels thoughtful, lasting and aligned with your vision. 

Looking Ahead 

While the market will continue to shift, good planning makes all the difference. With clear communication, a strong process and a realistic understanding of what’s happening industry-wide, we can navigate these conditions together and create spaces that bring comfort and beauty for years to come.