An Industry Moving at Two Speeds
The North American construction industry is splitting into two distinct directions as it navigates the third quarter of 2026. While residential activity and upstream architectural design pipelines continue to slow, non-residential construction remains exceptionally vigorous, propelled by an unprecedented wave of capital-intensive megaprojects across digital infrastructure and advanced manufacturing.
Construction cost escalation is regaining momentum after several quarters of relative stability. In July, the RLB National Construction Cost Index advanced to 292.28, continuing an upward path from 288.58 in April and 285.47 in January. Cost inflation rose by 1.28% over the quarter, reflecting an acceleration of 0.19% compared to the prior three months and setting the highest single-quarter increase seen in two years. Year-over-year, national cost escalation moved up to 4.45% from 4.37%, demonstrating persistent pricing pressure across the built environment.
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