The rise in prices of construction materials and construction costs will further accelerate in 2026. There are many cases in the industry where people are notified of a 70-80% price increase from the same day via a single fax, and they receive an estimate that the monthly cleaning fee will jump from 78,000 yen to 180,000 yen.Such situations are happening in reality. It is natural that many owners feel that this is an opportunistic price hike. However, there are structural factors behind the rise in costs that cannot be explained by a temporary boom. In this article, we will explain the essence of price increases based on the voices of people in the industry, and tell you specific actions that real estate owners should take now.
Key points of this article - Same-day price increases and quantity restrictions on construction materials are structural problems caused by geopolitical risks and supply chain disruptions. - "Prices will never go down" - The reality is that once labor costs go up, they will never go back down. - Opportunistic price increases do exist, but they can be dealt with through competitive estimates and continuous relationship building with vendors. - Cost increases are expected to continue until at least the end of 2026, and there is an urgent need to review repair plans as soon as possible.
What is really happening? The reality of rising construction and cleaning costs in 2026
In conclusion, material price increases and quantity restrictions announced on the same day are not malicious intentions on the part of vendors, but are self-defense measures against the backdrop of supply chain disruption and procurement concerns.
In 2026, the cost of real estate maintenance and management will rise all at once. In the field of construction materials, there are frequent cases in which some contractors notify prices by 70 to 80% on the same day via a single fax, and construction site personnel are often faced with the situation where they are told, ``The paper that arrived this morning means the price will change from today.''
Even more serious is the quantity limit. Upper limits have been placed on the amount that can be ordered for the same material, and some are saying that ``this material is now divided into sites where it can be used and sites where it cannot be used.'' While major contractors with financial resources are stocking up on supplies in advance, small and medium-sized contractors are unable to secure the necessary quantities, resulting in situations where construction periods are being extended or they are forced to refuse construction altogether.
A similar situation is occurring in the field of cleaning. There is a case where an owner who has contracted out the cleaning of the common areas of a condominium for many years at 78,000 yen/month is offered 180,000 yen as an estimate for renewal. It's natural to be surprised at a price increase of more than double, but if you listen carefully to what the vendor really thinks, you may find that the bottom line is that you can continue with the service for 120,000 to 130,000 yen. The reality is that there is a difference between the apparent offer price and the actual amount of room for negotiation.
Why do prices keep rising? Three structural factors
The roots of this price increase are three points: rising labor costs, geopolitical risks, and disparity in financial resources, all of which are structural problems that are difficult to resolve in the short term.
Rising labor costs: The reality that “prices will never fall”
There is a phrase that is often heard among people in the industry. "If labor costs go up, prices will never go down." This is not an emotional statement, but an honest statement of the reality of management.
Construction, cleaning, and management businesses are all labor-intensive industries that rely primarily on human hands. Rising minimum wages, increasing recruitment costs due to labor shortages, aging of veteran craftsmen and lack of young workers—these factors combine to cause labor costs to rise steadily every year. It is not realistic to lower the salary level once it has been raised. That is why there is a consensus in the industry that construction costs will not fall even if prices stabilize.
Structural changes such as rising personnel costs will also have a major impact on long-term rental management plans. It is important to understand that postponing repairs, which in the past have been ``maintaining the status quo'', risks incurring higher costs in the future.
Geopolitical risks and supply chain disruptions
Behind the rise in construction costs in 2026 are changes in the global situation. Trade issues and geopolitical tensions between certain countries are changing the route of sourcing raw materials and disrupting international supply chains. The prices of core materials such as steel, copper, and aluminum have become unstable in the world market, and the ripple effects are also affecting construction costs in Japan.
In the past, even if the price of raw materials soared, it could be absorbed through alternative routes or through inventory. However, there are now cases in which the alternative route itself has become difficult to function. When a vendor sends a single fax to notify you of a price increase on the same day, it is not an aggressive business tactic, but is often a response to the reality that the price of materials that could have been arranged until yesterday has changed since this morning.
A structure where only companies that can stock up on materials have an advantage
Another problem is that disparities in financial resources are beginning to be directly linked to disparities in competitiveness. Large traders with capital can stock large quantities of materials before prices rise. On the other hand, small and medium-sized businesses that purchase after receiving an order are forced to purchase at the increased price.
As a result, there is a polarization between ``sites that are possible and sites that are not.'' Even if you order the same work, whether or not it will be accepted varies depending on the contractor, and even if it is accepted, the estimated amount will vary greatly. This is not a case of piggybacking, but rather a result of the actual procurement costs being reflected in the estimates.
Opportunistic price hikes do occur—how to spot them and how to deal with them
You don't have to accept every price increase. You can tell whether it is a opportunistic increase or an inevitable move based on four axes: clarity of rationale, price increase range, comparison with other companies, and business relationships.
As we've said, there are good reasons for rising costs. However, it would not be honest to say that there are no opportunistic price hikes. There are cases where orderers who do not have a market view are asked to raise prices by more than the original rate of increase on the grounds that ``the world as a whole is going up.''
There are three practical points to help you spot opportunistic price hikes.
Firstly,Be sure to get quotes from multiple companiesThat's it. Request 2-3 companies with the same specifications and check for variations in price range. If you rely on just one company, you won't be able to see the market price.
Second,Ask specifically about the basis for the price increaseThat's it. Suppliers who can explain that ``labor costs have increased'' or ``The price of material A has increased by XX%'' are honestly disclosing their business conditions. On the other hand, if you can only vaguely explain that ``the overall increase has increased,'' the basis may be vague.
Thirdly,Value vendors with whom you have built long-term relationshipsThat's it. Contractors with whom you have a trusted relationship will often give you room for negotiation. In the case of cleaning mentioned earlier, by frankly telling the contractor, ``In the current business situation, 180,000 yen is difficult, and I would like you to think about it with us to continue,'' we were able to find a realistic solution of 120,000 to 130,000 yen.
Opportunistic vs. unavoidable price hikes: assessment checklist
| Check points | Signs of piggybacking | grounds of necessity |
|---|---|---|
| Explanation of cost basis | Only “the industry as a whole is going up” | A breakdown of material costs, labor costs, and fuel costs can be presented. |
| Price increase range | More than doubled in a few months, no step-by-step explanation | Gradual or clear reason for increase |
| Comparison with other companies | Only our company is outstandingly high. | Other companies in the industry also offer the same level |
| advance notice | Sudden/same-day contact | A few weeks to a month's notice will be given |
| room for negotiation | Immediate answer: non-negotiable | Indicates that it can be adjusted depending on conditions and quantity |
INA&Associates Checklist based on on-site interviews by the real estate management department (as of April 2026)
How long will it last? Outlook and impact on real estate owners
Although there may be a turning point in the summer of 2026 for price increases, it is necessary to plan on the assumption that cost levels, including personnel costs, will remain high after the end of the year.
Many industry insiders believe that ``summer 2026 may be a turning point.'' This is because the status of international trade negotiations and the flow of material procurement may change at that time. However, even if things return to normal once this milestone is passed, many predict that it will take until the end of the year or longer for cost levels to return to normal.
One thing to note about the impact of rising prices on real estate owners is that they tend to avoid large-scale construction work when repair costs are rising. It is certainly reasonable to consider the timing of non-urgent construction projects. However, if you continue to postpone necessary repairs, there is a risk that the building will deteriorate further and require even greater costs in the future. In this era of rising costs, it is important to properly organize priorities: ``What should we do now and what can we wait?''
If you are considering reconsidering your repair plan,“Market price and breakdown of apartment rebuilding costs | Explanation of points for income and expenditure planning and cost reduction”It is also helpful.
Three actions property owners should take now
The basic strategy for the client is to prioritize repairs, cultivate relationships with contractors as assets, and regularly review management costs.
1. Review your repair priorities now
Rather than considering all repairs equally, it is necessary to separate them into ``repairs that will increase future costs if postponed'' and ``construction that can be waited for.'' For areas where damage will spread if left untreated, such as waterproofing exterior walls, aging pipes, and updating electrical equipment, it makes sense to take action now, even if it costs a little more. On the other hand, upgrading the interior and adding value to equipment can be considered after the cost environment has stabilized.
At INA&Associates, we also consult with owners about redesigning repair plans. If you have any specific questions, such as comparing the current estimate with the appropriate price or organizing your priorities, please let us know.
2. View long-term relationships with vendors as an asset
In an era of rising costs, the people who will be hit the hardest are owners who have placed orders in the style of ``searching for a cheaper supplier each time.'' A company you trust will be able to help you with sudden problems, and will be honest when negotiating prices. It is important to view the relationship with the vendor itself as an "asset" and cultivate it from a long-term perspective.
3. Create a plan to optimize management costs
Start by making a list of monthly and annual running costs, such as cleaning, management work, and periodic inspections, and get an idea of the appropriate price for each. Making it a habit to get competitive quotes from multiple vendors and having a sense of the market price is the best defense against opportunistic price hikes.
INA's view: toward rental management that deals with honest costs
Rather than immediately assuming that a high estimate is bad, creating sustainable transaction conditions while checking the cost basis will protect rental management in the future.
What I would like to emphasize with this issue is the importance of letting go of the idea that a high estimate equals a bad contractor. Many of the vendors who tell you about price increases are offering honest prices to keep themselves in business. That's why owners need to confirm through dialogue, ``Why are we paying this price?'' and build a mutually sustainable relationship.
The period of rising costs is also an opportunity to reconsider "somehow management" that relies on long-standing customs. Sorting out what costs are truly necessary and where there is waste, and incorporating them into a medium- to long-term income and expenditure plan—this process will improve the quality of rental management.
summary
The price increases in construction materials, construction costs, and cleaning costs in 2026 are based on structural factors such as geopolitical risks, rising labor costs, and supply chain disruptions, and are not a temporary boom. Although we cannot say that there are no opportunistic price hikes, it is also true that there are many cases that can be dealt with through competitive pricing and honest dialogue. With rising costs expected to continue until at least the end of 2026, now is a good time for real estate owners to reconsider their priorities for repairs, relationships with contractors, and optimization of management costs.
Frequently asked questions (FAQ)
Q1. How long will the price increases for construction materials last?
According to industry insiders, the summer of 2026 is considered a turning point. However, even if things calm down, it is expected that it will be after the end of the year before the price level returns to its original level, and it is realistic to assume that the increase in labor costs in particular will not return to its original level.
Q2. Can I refuse a large increase in cleaning fees?
Although it is possible to refuse, there are risks involved in changing the company easily. First, we recommend that you check with the vendor about the basis for the price increase, and then obtain competitive quotes from multiple vendors to understand the market price. There are many cases where we are able to settle on a lower price than the asking price through negotiations that take advantage of our relationships with existing contractors.
Q3. How can I tell if it is a piggyback price increase?
The key to identifying opportunistic price hikes is ``clarity of basis'' and ``comparison with competitive estimates.'' A company that can specifically explain the reason for the price increase is highly reliable, and you can get a good idea of the market price by requesting quotes from multiple companies. If the amount offered is more than double the market price, it would be wise to check the basis or consider switching to another vendor.
Q4. Should we postpone construction work now that repair costs are high?
There is room for judgment regarding value-added renovations that are less urgent, but we do not recommend postponing repairs that will directly lead to building deterioration. If left untreated, there is a risk that the damage will spread and cause even higher costs in the future. Amid rising costs, organizing and prioritizing repairs will lead to stable rental management.
Citations/reference materials
- Ministry of Land, Infrastructure, Transport and Tourism “Construction Works Statistical Survey”(Reference date: April 20, 2026)
- Bank of Japan “Corporate Price Index (CGPI)”(Reference date: April 20, 2026)
- Ministry of Health, Labor and Welfare “Monthly Labor Statistics Survey”(Reference date: April 20, 2026)
