What Wisconsin Developers Need to Know About 2026 Material Costs

For Wisconsin developers, 2026 is shaping up to be less about chasing the best deals and more about surviving ever-increasing prices. Tariffs, material price swings, and supply-chain constraints continue to weigh on construction budgets. Recent tariff actions have added roughly $10,900 to the cost of a new home, and overall building material prices have increased by 30% since 2020, according to the National Association of Home Builders (NAHB). Like it or not, these conditions are something developers have to contend with for the foreseeable future. Take it from us here at QBC, LLC: Smarter sourcing and disciplined execution are crucial in times like these. Let’s break down what you should know about rising material costs this year (and how you can navigate them). 

What factors are driving Wisconsin construction costs in 2026?

Tariffs, long-term inflation, and logistical hiccups are all contributing to rising material costs in 2026. As of October 2025, there is a global 10% tariff on imported softwood lumber. Unfortunately for Wisconsin developers, there’s no expiration date in sight, so expect to pay higher prices for your softwood indefinitely. In fact, all kinds of materials have seen overwhelming increases since 2020, with steel seeing a 66% hike and oriented strand board exploding at an increase of 500%. On top of all this, consider supply chain and logistics pressure. 

You don’t need us to tell you the world is a volatile place right now. We don’t deal in geopolitics, but common sense says regional & global conflicts impact international trade, the consequences of which land squarely in your wallet. Not to mention, the guys further up the supply chain are not immune to the labor shortages and rising wages that have become standard across the industry. The Associated General Contractors of America found that 45% of firms say labor shortages are causing project delays. Fewer workers can lead to greater inefficiencies, and as we all know, time is money. The NAHB reports that average hourly earnings were up 3.5% across the US last year. That’s another trickle-down effect that you’re likely to feel. 

Which material categories are seeing the largest cost increases?

Lumber and timber are seeing the largest cost increases in 2026. America relies heavily on imported softwood. According to the NAHB, America imports the majority of our softwood from Canada, which will now be slapped with 35% duties. Other categories seeing big cost hikes are kitchen cabinets and furniture, the tariffs on which were raised to 30% and 50%, respectively, as of 1/1/2026.

How much more are developers paying per project or per unit in 2026?

Urban Land Magazine reports that general material costs have risen about 2.4 percent over the past year. The NAHB estimates that recent tariff actions on key imported materials (lumber included) have added roughly $10,900 to the cost of a typical new home. While that figure is drawn from residential construction, it reflects broader trends that affect commercial and multi-family projects in Wisconsin, particularly lumber, steel, aluminum, and finish components that are often imported or tied to global supply pricing. NAHB also notes that imported goods historically account for about 7% of all materials used in new construction.

Why do Midwest markets feel material cost pressure differently than other markets?

Wisconsin and Northern Illinois developers will likely feel these impacts more directly than coastal markets. A higher share of projects in our area (Deforest, Wisconsin, and beyond) rely on wood-intensive construction and Canadian supply chains. Midwest projects tend to operate on tighter margins than their coastal counterparts, making material cost increases like the ones we’re seeing now more problematic.

Which project types are most exposed to 2026 material cost increases?

Multifamily construction in Wisconsin is particularly vulnerable to changes induced by lumber tariffs, as they rely heavily on framing lumber, sheathing, and engineered wood products. Of course, these products are all considered softwood, and so they are directly impacted by the aforementioned 10% tariff. Multifamily construction saw costs rise 4% in 2025. But even that is a small piece of a larger picture. Multifamily construction costs as a whole have risen a whopping 30% in the past 5 years, according to Urban Land Magazine. 

Why do traditional procurement models increase cost volatility?

Traditional procurement models rely on many different parties, each adding their own markup as materials move through the supply chain. A system like this compounds tariff-driven cost increases at every step. Longer approval cycles and disconnected purchasing decisions also introduce timing delays, making projects more vulnerable to price volatility as lumber and material costs fluctuate week to week. When material sourcing and labor are fragmented across separate trades, cost overruns increase. Substitutions, rework, and schedule gaps turn tariff pressure into real budget impact. That’s why it’s crucial to choose a multi-scope partner like QBC LLC, who can reduce headaches and maximize your margins while maintaining a commitment to quality work thanks to our 25+ years of experience. 

Can direct sourcing reduce the cost of materials?

Direct sourcing can, and often does, reduce the impact of tariffs, but it cannot always mitigate other logistical factors, like labor shortages. Direct sourcing means purchasing materials closer to the source, often directly from manufacturers or primary distributors. By locking pricing earlier and coordinating purchases with installation schedules, developers gain greater price certainty and limit exposure to short-term volatility. Across thousands of commercial and multifamily scopes, and based on decades of Midwest procurement, we at QBC LLC have found that strong regional supplier relationships, particularly in Deforest, Wisconsin, and Northern Illinois, enable faster lead times, more predictable pricing, and better control over tariff-driven cost increases.

How does integrated, expert labor help offset higher material costs in 2026?

Integrated, expert labor reduces costly (and frustrating) rework by ensuring materials are installed correctly the first time. Fewer handoffs between subcontractors mean fewer change orders, tighter coordination, and less schedule drift tied to material adjustments. As a multi-scope partner, QBC LLC leverages efficiency and coordinated execution to help offset material cost increases, protecting project budgets by saving time where it matters most.

What can Wisconsin developers do to plan for 2026 costs?

As a developer, there are a few things you can do to mitigate rising material costs. First, you’ll want to find trusted voices in the industry with experience navigating a variety of economic ecosystems. Here at QBC, LLC, we’ve handled thousands of projects over the course of our 25+ year history, so we’ve seen a thing or two when it comes to shifting markets.

Material costs will continue to fluctuate in the months and years ahead, but they don’t have to derail your project. Developers who take a proactive approach are better positioned to protect budgets and schedules despite ongoing volatility. With the right planning and partners in place, changing costs become a manageable variable rather than project-ending risks

How can QBC, LLC help developers manage material cost risk?

QBC, LLC helps developers manage material cost risk by aligning direct sourcing, integrated scopes, and experienced labor under one coordinated approach. Based on 25+ years of Midwest construction experience and thousands of commercial and multifamily scopes, QBC understands where risks actually show up: material timing, substitutions, and execution gaps, (not just line-item pricing).

As a multi-scope commercial subcontractor with operations rooted in DeForest, Wisconsin, QBC reduces cost volatility by limiting handoffs, shortening timelines, and coordinating material decisions with the same crew that install them. This model helps minimize rework, avoid late-stage change orders, and protect schedules. In this way, we allow developers to absorb material price pressure through efficiency and predictability rather than last-minute cost cutting.

Like plenty of other things in the world, material costs in 2026 are unlikely to return to pre-2020 norms, especially for wood-intensive and tariff-exposed projects across Wisconsin. For developers, the path forward is to build projects that can withstand volatility through better planning, coordination, and execution. With experienced, multi-scope partners like QBC, LLC and a proactive approach to sourcing and labor, Wisconsin projects can move forward with confidence, even in a persistently higher-cost environment.

Want to work with us? Get in touch and invite us to bid today. We look forward to learning more about your project.

‍