2026 U.S. Construction Cost Outlook: Expect Persistence, Not Relief

Aggregate construction costs are estimated to rise roughly 8% under current tariff policy levels in 2026, with labor representing the most acute structural challenge — approximately 500,000 additional workers will be needed this year, with about 94% of contractors already reporting difficulty filling open positions across Oregon, Washington, and nationwide. Aggressive immigration enforcement has created immediate disruptions in major markets that will have lasting negative effects on industry capacity, with workforce-related disruptions currently partially masked by limited activity but expected to become acutely noticeable when residential and commercial demand accelerates later in 2026 — making workforce planning and retention a top strategic priority for every PNW construction firm this year.

Source: JLL Read the full story: https://www.jll.com/en-us/insights/2026-us-construction-perspective