Prices for Building Materials Continue to Rise
The latest PPI report released by the Bureau of Labor Statistics reveals that prices of goods used in residential construction ex-energy rose by 1.4% in March, adding to a total 8% year-to-date increase, according to NAHB Eye on Housing. The PPI for softwood lumber increased 6% in March after significant gains at the start of the year and a 90.3% gain since September 2021.
On the contrary, prices for steel products and ready-mix concrete declined in March, but remain elevated after months of consecutive increases during the pandemic.
Year-over-year, building materials prices increased 20.4% and have risen 33% since the start of the pandemic.
The price index of services inputs to residential construction registered even steeper increases, rising 3.2% in March, 5.1% in February, and 6.2% in January. As a result, the price index of services used in home building (including trade services, transportation and warehousing) went up 15.2% since the start of the year. Year-over-year, the index increased 18.5%. Counting since the start of the pandemic, services prices are now 39% higher.