---
title: "Brick costs more than an apartment: how a 50% rise in production costs is hitting the primary housing market in 2026"
description: "In Q2 2026, apartments on the primary market rose by 20.5% year on year — a five-year record. The production cost of building materials grew by 30–50%, and a further 10–20% increase is expected by the end of the year."
date: 2026-09-02T14:22:01.000Z
lang: en
url: https://xab.info/en/posts/brick-costs-primary-housing-market-2026
tags: [housing-prices, construction-materials, primary-market, ukraine-economy, rebar, developer-costs, inflation]
publisher: "XAB.info"
---

# Brick costs more than an apartment: how a 50% rise in production costs is hitting the primary housing market in 2026

![Stacks of ceramic bricks on pallets at a building materials warehouse — rising production costs hit the primary housing market in 2026](https://xab.info/media/2026/09/02/udorozhanie-zhilya-pervichnyj-rynok-stroymaterialy-2026/udorozhanie-zhilya-pervichnyj-rynok-stroymaterialy-2026-1.webp)

## 🎯 Key Points

- Prices for primary housing in Q2 2026 rose by 20.5% year on year — a five-year maximum
- The production cost of building materials has increased by 30–50% since the beginning of the year, depending on the category
- A Russian missile strike on "ArcelorMittal Kryvyi Rih" has partially halted rebar production and creates a risk of further price increases
- A further 10–20% price increase for materials is expected by the end of 2026

The second quarter of 2026 has become a turning point for the Ukrainian new-build market: according to the State Statistics Service, apartments on the primary market rose by 20.5% year on year. This is the largest price increase in the past five years. At the same time, as developers point out, the rise is not the result of developers' "whims" but is driven by objective pressure on production costs: building materials have become 30–50% more expensive since the beginning of the year, the cost of construction work has grown by 23.1%, and producer prices for industrial goods, including building materials, have jumped by 39.1% in annual terms.

### What exactly has become more expensive and why

In a response to RBC-Ukraine, PBC "Kuznechnaya" notes that the price increase has affected virtually all categories of construction products. The main drivers are cited as rising fuel prices, raw materials (cement, sand, crushed stone), labour costs, and higher freight tariffs at Ukrzaliznytsia. Artyom Gordeychuk, head of the client service at developer Standard One, clarifies that the most noticeable jump has been recorded for concrete, mortars, bricks, rebar, and cables. In addition, due to rising delivery costs, the market has virtually lost materials that themselves have not become more expensive but have become economically unprofitable to transport.

### Safety factor and strikes on production facilities

Safety remains a separate but no less significant factor. The communications department of "ArcelorMittal Kryvyi Rih" told RBC-Ukraine that the price of rebar for the end consumer has not experienced significant fluctuations in recent months, despite a substantial rise in internal production costs. However, as a result of a recent Russian missile strike on the enterprise, the producer was forced to partially halt production processes. The combination of this factor with high electricity prices for industry creates a risk of further price increases for Ukrainian rebar and, as a consequence, for the entire reinforced-concrete frame of new buildings.

### Forecast for autumn and the end of 2026

According to Standard One estimates, a further rise in the cost of materials and engineering equipment is expected by the end of the current year. Depending on the category, the price increase may average around 10–20% from the current level. Thus, if in the second quarter the year-on-year price growth for apartments was 20.5%, then by the fourth quarter of 2026 this figure, following the logic of the cost chain, may accelerate even further, unless developers offset the difference from their own margin.

### Contradictory data

The provided sources record a discrepancy in assessing the dynamics of rebar prices. On the one hand, "ArcelorMittal Kryvyi Rih" states that the retail price of rebar "has not experienced significant fluctuations" for the end consumer. On the other hand, Artyom Gordeychuk of Standard One explicitly names rebar among the items for which "prices jumped more noticeably." The difference is likely explained by the fact that at the time of the metallurgical plant's response, the strike on production had not yet been reflected in retail prices, whereas the developer is recording an already formed shortage and a rise in wholesale quotes. In addition, the growth figures (20.5% for apartments, 23.1% for construction and installation work, 39.1% for producer prices, 30–50% for material production costs) refer to different calculation bases and time slices, which makes their direct comparison incorrect, but not contradictory.

### Context and outlook

The record price growth on the primary market in 2026 is formed by several interrelated factors: the devaluation of the hryvnia increases the cost of imported equipment and raw materials, a labour shortage raises the cost of labour, and military operations directly damage production capacities and supply chains. Taken together, these factors form a "wall" of production costs that developers are forced to pass on to the final price per square metre. For buyers of new builds, this means that the window of relatively "cheap" housing on the primary market is probably closing, and for the industry — the need to rethink business models and seek new sources of financing.

## 🔍 Fact-Check Verification

- [Building materials have become up to 50% more expensive: what else is raising the cost of apartments in 2026](https://www.rbc.ua/ukr/news/budmateriali-podorozhchali-50-shcho-shche-1788358625.html) - Основной источник. Подтверждены данные Госстата (20,5% YoY), рост СМР (23,1%), цен производителей (39,1%), заявления ПБГ «Кузнечная» (30–50%), Standard One и «АрселорМиттал Кривой Рог».
- [Forecast of building material prices from June 1. How the cost of renovation goods will change](https://life.ru/p/1879886) - Источник относится к российскому рынку. Не использован для фактов по украинскому рынку.
- [Prices for building materials will change by the May holidays. How the cost of renovation will change](https://life.ru/p/1859510) - Источник относится к российскому рынку. Не использован для фактов по украинскому рынку.
- [The price tag has risen: how much developer housing will cost in autumn](https://dengi.ua/realty/9762306-tsennik-vyros-skolko-budet-stoit-zhile-u-zastrojschikov-osenyu) - Подтверждает общую динамику роста цен на жильё у застройщиков осенью 2026 года и контекст удорожания.

## ❓ FAQ

### Q: By how much did apartments on the primary market become more expensive in the second quarter of 2026?
**A:** According to the State Statistics Service, by 20.5% in annual terms. This is a record increase over the past five years.

### Q: Which building materials have become more expensive the most?
**A:** According to Standard One, prices jumped most noticeably for concrete, mortars, bricks, rebar, and cables. PBC "Kuznechnaya" notes a general rise in production costs of 30–50% across all categories.

### Q: How will the missile strike on "ArcelorMittal Kryvyi Rih" affect prices?
**A:** The enterprise was forced to partially halt production. This creates a risk of a rebar shortage and further price increases for reinforced-concrete structures, especially in combination with high industrial electricity prices.

### Q: What will happen to building material prices by the end of 2026?
**A:** According to Standard One estimates, a further price increase of 10–20% is expected, depending on the category of material and engineering equipment.

### Q: Is the rise in housing prices a result of developers' greed?
**A:** No. Developers point out that the rise is driven by objective pressure on production costs: higher prices for raw materials, fuel, logistics, and labour, as well as damage to production capacities as a result of military operations.