The price of oriented strand board (OSB) fell 1.0 percent in October, whereas prices increased for softwood lumber (2.3 percent), gypsum products (0.3 percent) and ready-mix concrete (0.2 percent).
The National Association of Home Builders cites two important factors driving disparities between price changes builders have experienced and the producer price index (PPI) changes -- the PPI tracks prices paid by wholesalers, distributors, and retailers, rather than what those businesses charge customers, and does not include prices paid for imports.
The drop in OSB prices followed a three-month period in which prices increased 7.1 percent over the prior three months. While the monthly decline is welcome news, OSB prices remain 12.9 percent and 37.0 percent higher than they were at the beginning of 2017 and 2016, respectively.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development