Development

CHICAGO — As employer costs cool down, materials — particularly metals — are emerging as the bigger source of construction costs pressure, according to findings from Cushman & Wakefield’s Construction Insights: Summer 2026 report. For much of the post-pandemic construction cycle, finding people to build was becoming increasingly expensive. Labor shortages, wage growth and competition for skilled trades pushed construction costs higher as developers navigated an already challenging development environment. But now, that equation is beginning to change. The recently published report shows that construction cost pressures are becoming concentrated in materials, as metals and equipment prices rise more rapidly while labor-cost growth steadies. The shift is significant for developers and contractors as the factors influencing project budgets are becoming tied to pricing commodities, which are impacted directly by tariffs and global supply chains. The increase in commodity prices is more than 4.7 times the rate recorded a year earlier, led by aluminum at 40.9 percent, copper base scrap at 39.3 percent and nonferrous metals at 38.5 percent, as reported by Cushman & Wakefield. A Different Kind of Pressure According to Cushman & Wakefield, the ENR Building Cost Index rose 4.7 year-over-year in August 2026, while its skilled labor component …