Hilliard added 161 new homes and $113 million in commercial construction last year, but rising building costs threaten to slow that pace.

Construction costs nationwide have climbed 5% since the start of 2026 and could hit 8% by year-end, according to a report from real estate services firm JLL. Columbus Underground reported the findings Aug. 28, along with reactions from Central Ohio industry leaders who say the trend matches what local builders are experiencing.

The JLL report points to three drivers: tariffs, labor shortages tied to federal immigration policy and rising energy costs linked to the war in Iran. Copper is up 36% year-over-year, aluminum 45% and U.S. hot-rolled coil steel 27%, according to the report's commodity data.

Tod Bowen, executive officer of the Building Industry Association (BIA) of Central Ohio, told Columbus Underground the national data lines up with what he hears locally.

"Definitely [increasing costs] are one part of the squeeze, obviously another part is the mortgage rates being high … and the other thing is the cost of government regulation continues to go up," Bowen said.

He described that regulation cost as including building code requirements and zoning-related development expenses. Central Ohio's housing demand is holding steady but not growing, Bowen said. Nationally, demand is soft, but the region's growth has kept it from declining.

"We're kind of treading water," he said.

Leah Evans, president and CEO of affordable housing developer Homeport and a BIA of Central Ohio board member, told Columbus Underground in its Aug. 28 report that the JLL findings reflect what her organization is experiencing. Evans said Homeport is projecting modest cost increases into 2027, making the delivery of affordable rents more challenging.

Those cost pressures arrive as Hilliard grapples with affordability. The city launched a comprehensive housing study in November 2025, noting that rising prices and interest rates have placed typical homes out of reach for more than half of Hilliard households. No results from that study have been published.

Hilliard City Council unanimously approved Clover Meadows, a 79-unit subdivision on Elliott Road, on June 8, with homes starting in the high $600,000s, according to Hilliard Beacon. The city's 2025 Popular Annual Financial Report shows the building activity that preceded this year's cost spike.

No upcoming council hearing or public meeting on construction costs or housing affordability has been announced.