Construction Costs in 2026: What Homeowners Should Expect

As we head into 2026, homeowners in Southern California are facing a remodeling market that’s still active, changing, and more transparent than ever before. Whether you’re planning a bathroom remodel, a new patio, or a full home renovation, understanding construction costs today will help you budget smarter, avoid surprises, and get better value from your contractor.

At First Round Construction, we work with homeowners every day, and this year we’re seeing clear trends in material costs, labor, and project pricing. Below is what you should know going into 2026.

1. Why Costs Are Still High (But Predictable)

After years of pandemic-related price swings, 2026 looks more stable — but costs are still elevated compared to pre-2020 levels.

Main factors affecting construction costs:

• Labor Costs: Skilled labor is in demand; residential construction wages remain high.

• Materials: Lumber, steel, fixtures, and specialty materials have moderated but haven’t returned to old lows.

• Supply Chain: Many materials are now stocked more reliably, but lead times still matter.

• Permits & Regulations: Local codes continue to evolve, especially in OC and coastal areas.

➡️ This means homeowners should expect steady—but not unpredictable—pricing in 2026.

2. What Homeowners Are Paying on Average (2026 Estimates)

Note: Costs vary by city, scope, permits, and finishes. These are ranges from actual projects we’re quoting in Los Angeles and Orange County.

Bathroom Remodel

• Minor refresh (vanity, fixtures): $15,000 – $30,000

• Mid-range remodel: $30,000 – $55,000

• High-end full remodel: $55,000+

Kitchen Remodel

• Partial update: $25,000 – $55,000

• Full remodel: $55,000 – $125,000+

Patio & Outdoor Living Spaces

• Concrete slab & basic features: $8,000 – $18,000

• Pavers, lighting, landscaping: $18,000 – $40,000+

Balcony / Deck Waterproofing & Repair

• Standard waterproofing: $3,000 – $10,000

• Structural repairs + waterproofing: $10,000 – $25,000+

➡️ These ranges are realistic for 2026 based on current labor and materials availability in LA and OC.

3. The Biggest Cost Drivers in 2026

Here’s why some jobs cost more than others:

• Scope of Work

The more demolition, structural changes, and custom finishes — the higher the cost.

• Materials & Finishes

Standard vs. premium fixtures, tile, stone, and cabinets can swing totals dramatically.

• Labor Rates

Certified, experienced crews cost more upfront but save money by reducing mistakes and delays.

• Design & Permits

➡️ Plans, engineering, and city permits still add 5–15% to your budget — often overlooked by homeowners.

4. Tips to Stay on Budget in 2026

Here’s how savvy homeowners are controlling costs this year:

1. Plan Ahead

Last-minute changes = extra costs. Lock in finishes and fixtures early.

2. Get Transparent Quotes

Ask contractors for line-item estimates so you know where every dollar is going.

3. Build a Contingency

Set aside 10–15% of your budget for unexpected repairs or upgrades.

4. Choose Experience

➡️ Experienced teams avoid costly mistakes and re-work — saving you money overall.

5. Why Working with a Licensed Contractor Matters in 2026

Choosing a licensed, insured contractor isn’t just best practice — it’s essential in today’s market.

✔ Proper permits✔ Accurate cost forecasting✔ Quality workmanship✔ Warranty and protection

At First Round Construction, we pride ourselves on clear communication, detailed budgets, and realistic timelines — so you’re never surprised.

6. Final Thoughts

Construction costs in 2026 aren’t dropping back to the way they were in the early 2010s — but they are becoming more predictable and manageable. With smart planning and the right partner, you can budget confidently and get the remodel you envisioned.

If you’re thinking about a project this year — especially in Orange County or nearby — reach out to us for a free consultation and detailed cost estimate.

👉 Contact First Round Construction today to start planning your 2026 remodel.