5 construction trends to watch in 2026

An article from Deep Dive // 2026 Outlook 5 construction trends to watch in 2026 Contractors will be keeping tabs on material costs, data center demand, interest rates and more this year. Published Jan. 7, 2026 Sebastian Obando Reporter Share Copy link Email LinkedIn X/Twitter Facebook Print License Add us on Google Construction workers build out a new building on Sept. 5, 2025, in San Francisco, Calif. Justin Sullivan/Getty Images via Getty Images Listen to the article 10 min This audio is auto-generated. Please let us know if you have feedback. Contractors will need to depend on a familiar formula in 2026. Over the past 12 months, construction activity leaned heavily on a narrow group of winning sectors. Tech giants pledged billions to expand the buildouts of their data center footprints. Public infrastructure construction, such as highways and water works, hummed along despite overarching funding pressures. Without these megaprojects, however, expect construction activity as a whole to slow, as it did in November. Still, demand in those areas remains strong despite common headwinds around labor and building costs. But for firms unable to absorb that, those factors could ultimately sideline work. For that reason, awards in the right sectors will again separate contractors gaining ground from those just treading water. Below are five construction industry trends contractors will be keeping tabs on in 2026. On material costs Material prices are unlikely to deliver either a...