Gordian’s 2026 RSMeans™ Data reveals construction labor wage increase countered by stabilization in materials and equipment costs in past year
Gordian, provider of data-driven solutions for all phases of the building lifecycle, reported relative stability in construction equipment and materials costs last year, but continued growth in construction labor wages that surpassed inflation in 2025.
Analysis of Gordian’s 2026 RSMeans Data revealed the average change for labor wages entering this year was 4.6% higher than at the start of 2025. This follows average increases of 4.1% and 4.6% in the past two years, respectively. The data report found that 98% of labor categories across the entire database experienced an increase of more than 3% in wages last year, up from 89% and 93% in the previous two annual releases.
The annual data release documented some stabilization in the costs of construction equipment and materials in the past year:
- Equipment — The average change for equipment costs across the entire database was a 1.4% increase from a year ago, which was down from 4.5% and 7.0% in the prior two years. Gordian researchers found that just 12% of equipment costs changed by +/- 5%, a substantial drop from the 68% of entries in the database that experienced large price swings the year before.
- Materials — The average change for materials costs across the entire database was a 3.9% increase from a year ago, which was up slightly from the 3.1% increase in 2025 but still down sharply from the 8.7% increase in 2024. Roughly one-third (34.6%) of materials in the database experienced a +/- 5% change, down from 50% last year.
“Although cost volatility has moderated, it remains essential to closely track construction pricing, as shifts in supply chains, material availability and other market factors can quickly influence trends,” said Chris Gaudreau, Chief Product and Technology Officer at Gordian. “In today’s rapidly evolving environment, construction professionals must not only stay informed about the latest developments but also continually explore how technology and AI can help them anticipate changes and adapt with greater speed and confidence.”
RSMeans Data Online on Gordian Cloud Platform is continuously updated and built with robust tools and specialized features, like lifecycle costing, square foot estimating, predictive data and team productivity capabilities to ensure the highest-quality estimates. Gordian Cloud Platform includes a suite of advanced AI capabilities designed to help construction professionals plan, estimate and procure projects with unprecedented speed and assurance. Within Gordian Cloud Platform, customers will find an enhanced user experience and interface that elevates their planning, estimating and procurement capabilities, all powered by industry-leading RSMeans Data. RSMeans Data is also available in books and CD format, in addition to RSMeans Data Online.
Visit rsmeans.com for more information and to purchase 2026 RSMeans Data.
During its 82-year history, RSMeans Data from Gordian has established a reputation as the construction industry’s standard for material, equipment and labor costs. The comprehensive database is comprised of 92,000+ unit cost line items across 42 trades, 19,500+ assemblies and 100+ square foot models, backed by a cloud-based data infrastructure and a team of dedicated cost engineers. This team invests more than 30,000 hours each year developing supply chain relationships and researching local market conditions to provide reliable, up-to-date costs in the annual data and quarterly City Cost Index (CCI) updates. A wide range of engineers, architects, estimators, contractors and facility owners depend on the data to estimate the cost of both new building construction and renovation projects.