Data
Construction Cost Trends 2020–2026
Track how residential construction costs have changed since the pandemic-era surge. National average and state-by-state data.
2020 Avg
$128/sq ft
Pre-pandemic baseline
2022 Peak
$195/sq ft
Supply chain crisis high
2026 Current
$188/sq ft
Stabilized market
6-Year Change
+47%
2020 to 2026
Compare States (select up to 4)
3/4 selectedCost per Sq Ft by Year
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National Average by Year
| Year | $/sq ft | Change | Driver |
|---|---|---|---|
| 2020 | $128 | 0% | — |
| 2021 | $155 | +21.1% | Lumber price spike (+300%) |
| 2022 | $195 | +25.8% | Supply chain disruption, labor shortage, inflation |
| 2023 | $192 | -1.5% | Lumber prices normalized, supply chains eased |
| 2024 | $185 | -3.6% | Higher interest rates slowed demand, material costs fell |
| 2025 | $187 | +1.1% | Labor costs continued rising, materials stabilized |
| 2026 | $188 | +0.5% | Steady market, modest wage inflation |
What Drove Cost Changes
2020–2021
Lumber price spike (+300%)
+21% avg build cost
2021–2022
Supply chain disruption, labor shortage, inflation
+26% avg build cost
2022–2023
Lumber prices normalized, supply chains eased
-2% avg build cost
2023–2024
Higher interest rates slowed demand, material costs fell
-4% avg build cost
2024–2025
Labor costs continued rising, materials stabilized
+1% avg build cost
2025–2026
Steady market, modest wage inflation
+0.5% avg build cost