Denver Construction Costs Have Risen

Rising prices for materials and labor have led to the cancellation of multiple local development projects.

Updated on Oct. 5, 2026 in Construction

Rusted steel beams on raw dirt near a concrete foundation, reflecting the impact of rising construction costs in Denver. — Denver construction costs rose 4.6 percent year-over-year, leading developers to cancel several residential and commercial projects as material prices surge. AI Illustration. Upload story photo >

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Denver construction costs increased 4.6 percent year-over-year, driven largely by significant spikes in material prices. This inflationary pressure has caused developers to cancel several residential and commercial projects across the region.

Why it matters

Rising expenses for labor, fuel, and materials are straining development budgets and stalling growth. Concrete and steel trades have been hit particularly hard, forcing firms to re-evaluate the feasibility of planned construction.

Denver construction costs rose 1.3 percent in the third quarter of 2026, while nonresidential project costs grew 6.8 percent over the last 12 months. Nationally, construction material prices saw a 13.3 percent year-over-year increase.

The players

Cushman and Wakefield

This global commercial real estate services firm provides industry research and market reports on development trends.

The details

Projects halted due to high costs include a 70,000-square-foot Camp Pickle facility in Centennial and a 37-story building slated for the Larimer and Speer area. Meanwhile, major infrastructure efforts like the West 72nd Avenue widening project continue with a total cost of $137 million, supported by a $64.5 million bond.

Q2 2026: Denver nonresidential construction costs grew 1.4 percent.
Q3 2026: Denver construction costs increased 1.3 percent.
September 2026: Cushman and Wakefield released their construction insights report.

Market Landscape

The Denver market is currently grappling with broader inflationary cycles that have forced developers to scale back ambitious portfolios. This shift mirrors national trends where rising material costs are significantly narrowing profit margins for major urban developments.

Local residents may see a reduction in new housing and retail amenities as developers shelve projects in response to higher costs. These market shifts can also influence long-term commercial lease rates and the availability of modern office or residential space in the city.

The takeaway

Developers and investors are prioritizing cost-efficient projects to mitigate the risks posed by volatile material markets. Future development timelines will likely remain sensitive to fluctuations in the costs of essential commodities like steel and concrete.