On a construction site launched in early 2025, the structural work could cost significantly more than a signed quote from two years earlier. By early 2026, INSEE recorded a decrease in the construction cost index of 2.89% year-on-year in the first quarter.
This decline fuels hopes for a general easing of construction prices. The reality on the ground is more fragmented, and one cannot reason based on a single figure to decide whether to start or postpone a project.
BT01 and ICC Indices: Two Different Perspectives on Construction Costs
The construction cost index (ICC) published by INSEE measures the cost of new residential buildings. Its decrease of 2.89% in the first quarter of 2026 is a real but partial signal.
The national building index BT01, which tracks the evolution of labor and material costs in the construction sector, does not follow the same curve. In 2026, the indices for trades evolve differently depending on the trades involved: some lots show a decline while others continue to progress. As detailed in articles from Projet Immobilier, this divergence between lots prevents concluding a uniform decrease.
Specifically, a masonry quote can decrease while aluminum carpentry or electrical work remains stable or increases. Reasoning by lot rather than by overall index is the only way to assess a realistic budget.
Construction Material Prices in 2026: Which Items Really Decrease
It is often said that “materials are decreasing.” In practice, three categories need to be distinguished.
- Materials linked to global prices (steel, copper, aluminum) have experienced occasional corrections but remain sensitive to geopolitical tensions and tariffs. A market fluctuation can easily negate several months of decline in just a few weeks.
- Locally manufactured products (blocks, ready-mix concrete, tiles) evolve more slowly. Their prices incorporate energy costs and labor charges, two items that have not significantly decreased in France.
- Insulation and finishing materials (rock wool, PVC carpentry, drywall) follow their own dynamics, with persistent increases on certain products related to RE2020 standards.
The decrease does not affect all materials in the same way. On a complete project, the actual savings depend on the mix of materials chosen and the share of each lot in the total budget.
Maintenance-Improvement: An Opposite Trend
INSEE reports that in the second quarter of 2026, the prices of maintenance-improvement work on buildings continue to rise year-on-year. For those considering a major renovation rather than new construction, the rise in renovation prices persists despite the decline in the ICC. The reasoning “I’ll wait for it to drop” does not work the same way whether one is building or renovating.
Labor Costs in the Construction Sector: The Often Underestimated Factor
Materials represent a portion of the quote, but labor weighs heavily in the final price of a construction project. However, the construction sector in France faces persistent recruitment tensions. Companies do not pass on wage decreases, even when order books are thinning.
The new housing market remains in difficulty. This contraction reduces the volume of activity without necessarily lowering the hourly rates of craftsmen.
Fewer construction sites do not mean lower prices. Companies that survive the drop in activity maintain their margins to cover unavoidable fixed costs. On the ground, obtaining three competitive quotes for structural work or roofing remains a time-consuming exercise.
Should a Construction Project Be Postponed Until 2027?
The temptation to wait is based on the idea that a downward trend will amplify. Several elements urge a nuanced view of this strategy.
- Mortgage rates, after a phase of stabilization, remain the factor that structures purchases. A half-point increase in a loan easily cancels out the expected savings on construction costs.
- Environmental standards (RE2020 and beyond) continue to add technical requirements that increase the price per square meter, regardless of material trends.
- The commercial offer of new housing has significantly dropped. Fewer programs launched means less competition among developers, and thus little downward pressure on selling prices.
Postponing a project also exposes one to the risk of a rebound in costs if the international situation tightens again. Feedback on this point varies by region and sector, but waiting for a clear and lasting decrease is more of a gamble than a strategy.
What Can Be Done Now
Rather than speculating on price trends, one can act on the scope of the project. Compare quotes lot by lot, negotiate services item by item, and make choices between materials whose prices are actually decreasing and those that are stagnating. A precise costing job with a project manager or construction economist provides a more reliable vision than any macro forecast.
The construction market in France in 2026 cannot be summed up by a declining index. The ICC is falling, some materials are easing, but labor, standards, and renovation costs are pulling in the opposite direction. The real question is not “will prices decrease” but “is my project financially feasible today”. It is on this basis, with quotes in hand and verified borrowing capacity, that a solid decision is made.
