If you’ve asked for renovation quotes in 2026 — whether in Chicago, Toronto, Vancouver, New York, or Los Angeles — you’ve probably noticed something frustrating: similar projects get very different prices and overall costs seem to keep going up even when material markets look calmer.
This isn’t random — it reflects real structural pressure in the renovation industry right now.
Material Prices Still Matter — and Some Are Increasing Again
Even though some building materials have stabilized compared to the peaks of recent years, many key renovation inputs remain well above pre-pandemic costs.
For early 2026, confirmed price increases include:
• Plumbing fixtures — about 3–15% higher over late 2025 levels
• Flooring & slabs — roughly 6–10% increases starting January 2026
• Lighting fixtures — up around 3% at the start of the year
• Appliances — some brands like Miele up ~20%, others up 7–15%
These increases are already locked in for 2026 and not speculative, so if your project includes these categories, your materials budget may be significantly higher than last year.
Labour Shortages Keep Labour Costs High
Materials are only part of the story. Skilled labour shortages remain one of the biggest cost drivers in 2026.
Nearly 90% of contractors report difficulty finding qualified tradespeople (roofing, siding, window techs, etc.), and wage pressures reflect this scarcity. Labour costs for exterior trades continue to rise about 6–8% annually, with premium rates for crews who can start on time and finish reliably.
This shortage isn’t temporary — with a large share of today’s skilled trades reaching retirement age soon, labour supply is structurally constrained. That keeps a baseline under renovation costs even if material prices are less volatile.
Regional Price Differences Are Very Real
Homeowners in the U.S. and Canada are feeling these pricing pressures differently depending on location:
• In Toronto and Vancouver, labour and material availability trends show steady upward pressure on average renovation costs.
•In some RCA surveys, import tariffs on steel, aluminum, and hardware have contributed to volatility and higher project costs across urban Canada.
• Major U.S. cities often exhibit higher labour premiums and permit fees that further inflate budgets.
Contractors are adjusting quotes not just for materials, but also for local labour availability, permit delays, and overhead costs.
What Homeowners Are Actually Paying in 2026
In practice, renovation costs in 2026 are elevated compared to even a few years ago:
• Kitchen remodels often range significantly higher than before, especially with custom cabinetry, fixtures, and appliances.
• Bathroom upgrades and basement finishes frequently see labour costs dominating budgets.
• Even if material price growth slows, baseline elevated input costs mean homeowners need larger overall budgets than previously.
These costs aren’t just about materials — they reflect supply chain effects, workforce challenges, and industry pricing behavior.
Discussion
Have your renovation quotes changed significantly from last year where you live?
Are contractors telling you materials are the reason, or is it labour availability and scheduling?
Drop your city or region in the comments and share what you’re seeing — it helps others compare real local trends.