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Report

Property Valuation

Q1 2026 US market update

While market conditions have improved, current inflation data indicates that building construction and equipment costs have not reversed course, trending slightly higher compared to a year ago.

It has been welcome news to clients that property values are not having the same impact on renewal discussions as a few years back; however, property values remain critical to insurers. Restrictive policy terms continue to be applied in instances where insurer confidence is low, so Marsh encourages clients to regularly review and, as needed, update their property values through actual valuation support.

The topic of global tariffs continues to evolve, but the overall impact on construction and equipment costs has been relatively muted over the last 12 months.

The data below demonstrates that US construction cost trends (which include material and labor costs) are relatively consistent across data sources, construction types, and geographies. However, equipment and other content trends are higher and tend to vary more by data source. Before applying an average composite cost trend to equipment and contents, it is advisable to seek more industry-specific trends.

Our valuation team is available to support you in all areas where property values are concerned. We will continue to follow cost trends and provide updates and other valuation guidance to support our Marsh clients. 

The following is a recap of the cost trends in Q1 2026

If you would like a tailored review of your property valuations or insights into how current trends may impact your portfolio, please don’t hesitate to contact Marsh. We’re here to help you ensure that your valuations remain accurate and actionable.