The cost of building materials is up nearly 5% since the start of 2022 and more than 19% from a year earlier, the National Association of Home Builders (NAHB) said today.
On its website, the NAHB reported that according to the latest Producer Price Index (PPI) report released last week by the US Bureau of Labor Statistics, prices of goods used in residential construction, excluding energy and not seasonally adjusted, rose by 0.5% in April, following upward revisions to increases of 1.9% and 2.4% in March and February, respectively.
The year-to-date increases come on top of a 4.9% rise in building materials prices year-to-date, the NAHB said. Building material prices were also up 19.2% year-over-year and 35.6% since the start of the pandemic, the NAHB said.
Also, David Logan. NAHB’s director of tax and trade policy analysis, said the residential construction services input price index rose 0.9% in April. He also noted that the index had been revised higher for March, taking the monthly increase from 3.2% to 6.8% in the month.
“As a result, the price index for services used in housing construction – including commercial services, transportation and warehousing – has climbed 13.3% since the start of the year.”
Year-over-year, the index is up 18.1% and 45.6% since the start of the pandemic, Logan said.
For materials, specific increases include:
Softwood lumber: The lumber PPI (seasonally adjusted) fell 15.6% in April, following a downwardly revised 5.4% increase in March and a 2.5% increase in February. As a result, the index is now down 8.9% in the first four months of 2022. Since hitting its most recent low in September 2021, prices are up 60.4%.
Steel products: Prices for steel products (not seasonally adjusted) rose 2.4% in April — the first monthly increase since December 2021. Nonetheless, the first four months of 2022 have been positive for the cost of steel products after rising increased by 128% in 2021.
Ready concrete: The PPI of ready-mixed concrete (RMC) prices increased by 1.3% (seasonally adjusted) in April after a slight decline in March. The index climbed 8.9% year-over-year and is 12.6% higher than the January 2021 reading.
Gypsum products: The PPI for gypsum products (seasonally adjusted) was stable in April. Prices for gypsum products increased 17.8% year over year and 23.5% since January 2021.