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Building Materials Are No Longer Getting More Expensive. However, Construction Costs Are Rising.
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Construction material prices in August 2026 were on average 4% higher than a year earlier, according to an analysis by the PSB Handel Group. However, the scale of the price increases varied significantly depending on the category. Thermal insulation prices rose by a staggering 13.4%, while decorative materials prices declined. OSB boards and wood have seen the largest price increases year-to-date.
The construction materials market has slowed, but investment costs continue to rise. Developers and contractors are increasingly feeling the pressure of wages, construction organization, and lengthening project completion times.
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