Healthcare construction costs for 2026

Healthcare construction is being reshaped by rapid digital adoption, sustainability requirements, and ongoing cost and labor pressures. Facilities are increasingly designed as smart, data-enabled environments that support AI-driven operations and flexible care delivery models.

Adaptability has become essential, with modular construction, prefabrication, and scalable infrastructure helping organizations manage uncertainty and control long-term costs. At the same time, patient- and staff-centered design now emphasizes resiliency, wellbeing, and equitable access alongside clinical performance.

According to Gordian’s RSMeans Data building models, the national average cost per square foot for commercial new construction of hospitals is more than 25% higher than in 2021. Construction and material costs rose modestly through late 2025 amid greater stability but increased sharply in the first half of 2026.

Economic uncertainty continues to affect capital planning, leading many healthcare organizations to favor renovations and incremental upgrades to manage risk, optimize existing facilities, and support long-term sustainability goals.

Gordian’s data features more than 100 localized building models that allow architects, engineers, and other preconstruction professionals to quickly create conceptual estimates for future builds. This table shows six years of per-square-foot costs for three-story hospital buildings and the one- and five-year percentage changes.

Visit rsmeans.com/bdandc for more information about Gordian’s RSMeans Data.

Please note: Square foot models are used for planning and budgeting and are not meant for detailed estimates.