How the Construction Inflation Affects Your Wallet in 2026

Construction Inflation: What’s Happening?

According to Valor Econômico, a study by Turner & Townsend indicates that while construction inflation is expected to accelerate globally, in Brazil, particularly in cities like São Paulo and Rio de Janeiro, this inflation is slowing down. In 2025, the increase was 5.6%, but for 2026, the forecast is that increases will settle at 2.7%. For the coming years, São Paulo is expected to see inflation at 2.5% and Rio at 3%.

These figures are important because the construction sector directly affects the real estate market and, consequently, property values and living costs. If you’re thinking about buying or renovating your home, this slowdown could be good news.

Context of Inflation in the Construction Sector

Construction inflation occurs due to various factors, with labor being one of the main drivers. Globally, 77.7% of analyzed markets indicate a shortage of workers for construction. Meanwhile, in Latin America, 60% of participants believe labor supply is balanced. This directly influences costs and project availability in construction.

The research also highlights that, in terms of costs, Brazil is relatively competitive. For example, labor cost in São Paulo is US$ 8.80 per hour, a fraction of the cost in New York, which is US$ 161.40 per hour. This means that despite construction inflation, Brazil is still seen as an attractive destination for investments in this sector.

Practical Impact on Your Personal Finances

If you earn a fixed salary and pay monthly bills, it’s crucial to understand how this slowdown in construction inflation can affect your financial life. For instance, if you are planning to spend R$ 50,000 on renovations for your home, with the forecasted inflation of 2.7% in 2026, that amount may remain more stable compared to a high inflation scenario, where you would have to consider a significant rise in costs. This fits well within the 50/30/20 financial organization method, where you can allocate 20% of your income for investments and home improvements without straining your monthly budget.

What to Do with This Information?

With the expectation of lower inflation, now is a great opportunity for you to review your financial planning. Here are some actions you might consider:

• Review your budget: With construction inflation slowing down, reassess how much you can invest in home improvements or purchasing a new property.
• Consider buying real estate: If you're thinking about buying, this could be a good time as prices may not rise as much as in previous years.
• Invest in renovations: With controlled inflation, invest in improving your space without the fear of prices skyrocketing in the coming years.

Connecting with Financial Organization and ADXIS

Organizing your finances is crucial, especially in times of market changes. By utilizing the 50/30/20 method, you can better plan your spending or investments in construction and ensure that you are prepared for market fluctuations. ADXIS can help you understand your financial situation better and outline a plan that works for you.