U.S. healthcare construction report 2026

Trends, challenges, and opportunities shaping construction and design in healthcare facilities

As the U.S. population continues to age, the number of Americans aged 65 and older is projected to reach 82.1 million by 2050. Against this backdrop, this report provides a national perspective on the healthcare construction market, examining the economic, cost, and labor factors that influence capital investment decisions. 

Where the healthcare construction market stands

The U.S. healthcare construction sector reached a record $76.8bn in spending in 2025, reflecting a 66.0% increase from 2019 levels and a 9.5% rise year over year. While spending has moderated slightly in 2026, activity remains historically strong and continues to be supported by aging infrastructure, demographic growth, and ongoing healthcare workforce shortages.

Key risks impacting project cost and delivery

Tariffs and material costs
Tariffs continue to affect the pricing of key construction materials, including aluminum, copper, steel, and electrical equipment. These cost increases are adding budget uncertainty and extending procurement timelines for critical components. 

Labor availability
Persistent skilled labor shortages remain a challenge across the construction industry. Demand for specialized healthcare construction expertise and certification requirements further tighten the available workforce, increasing competition for qualified labor. 

Cost escalation and margin pressure
Rising input costs continue to outpace project pricing, placing pressure on project budgets and delivery. This imbalance underscores the importance of proactive cost management, early procurement strategies, and careful project planning.

Our full report explores how owners, developers, healthcare providers, and project teams can navigate these market dynamics while delivering resilient, efficient, and future-ready healthcare facilities.