Why are renovations so expensive in 2026?

Three forces are stacking: (1) labor — construction-trade wages have risen 4–7% per year since 2022, and the trades are short ~500,000 workers nationally; (2) materials — lumber, steel, copper, and concrete cycled through 30–80% increases in 2021–2023 and have only partially retraced; (3) regulation — energy-code updates, lead-paint rules, and stricter permit inspections add 5–15% across the board. State-by-state, the worst combinations are coastal markets with strict permitting + high cost of living (CA, MA, NY, WA) — those run 30–50% above national averages. Sun Belt states with rapid labor migration (TX, FL, AZ, NC) have moderated since 2024.