In September, the price trends for residential construction materials reversed, according to the latest Bureau of Labor Statistics data. The average prices paid for softwood lumber, OSB, and gypsum decreased for the month.
Residential construction goods input prices grew 0.2 percent after decreasing in July and August 2018, per the BLS Producer Price Index (PPI). The index for inputs to residential construction is up 5.2 percent in 2018 thus far, and is 10.2 percent higher than it was in January 2017, the National Association of Home Builders reports. Softwood lumber prices paid did go down in September, continuing the trend started in June, but is still at the highest levels on record, 18.7 percent above the 1997 record, per Random Lengths data.
Gypsum prices also reversed trend in September, falling 0.1 percent (seasonally adjusted) after a combined increase of 6.1 percent over the prior two months. Since the start of the year, the price index for gypsum products has increased 1.0 percent per month, on average. From January to September of 2017, prices paid for gypsum products rose 7.2 percent. The index has increased 8.1 percent over the same period in 2018.
Advertisement
Related Stories
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others
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
