Building Materials Prices Start 2022 with 8% Increase
According to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics, the prices of goods used in residential construction ex-energy (not seasonally adjusted) climbed 1.4% in March, following an upwardly revised increase of 2.2% in February and 4.1% in January. This adds up to an 8% jump in building materials prices since the start of 2022.
Building materials prices increased 20.4% year over year 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. The index increased 18.5% year over year.
Since the start of the pandemic, services prices are now 39% higher.
Here's how PPI for individual materials have shifted during this timeframe:
- Softwood lumber increased 6% (seasonally adjusted) in March following a 2.6% increase in February and 25.6% jump in January. As a result, the index increased 36.7% over the first three months of 2022. Since reaching its most recent trough in September 2021, prices have almost doubled, rising 90.4%.
- Gypsum products increased 1.6% (seasonally adjusted) in March. Gypsum products prices are 20.8% higher year over year.
- Ready-mix concrete came down 0.6% (seasonally in March but remains elevated after climbing over the prior 13 months. It is 9% higher compared to the January 2021 reading.
- Steel products, in contrast, declined 4.9% (not seasonally adjusted) in March — the third consecutive monthly decrease after record-breaking increases over the prior 15 months. Although the first three months of 2022 have been good months for the cost of derivative steel products, the price index more than doubled since the start of the pandemic.
Natalia Siniavskaia, NAHB assistant vice president for housing policy research, provides more in this Eye on Housing post.
Latest from NAHBNow
Jun 27, 2025
Supreme Court Limits Nationwide InjunctionsIn a case that could have far-reaching consequences for NAHB members, the Supreme Court today issued a 6-3 ruling that would limit the use of nationwide universal injunctions. A universal injunction stops the defendant from taking an action against anyone, anywhere.
Jun 27, 2025
National Housing Center Awards Recognize Outstanding Industry LegendsSeveral industry leaders were recently honored for their contributions to the housing industry during the National Housing Center Awards Ceremony on June 10 in Washington, D.C. Learn more about the recipients and how to nominate individuals for the awards.
Latest Economic News
Jun 27, 2025
State and Local Property Tax Revenue Grows in the First QuarterIn the first quarter of 2025, state and local governments experienced an increase in property tax revenue growth. On a seasonally adjusted basis, state and local government property tax revenue grew 1.1% over the quarter, according to the Census Bureau’s quarterly summary of state and local tax revenue.
Jun 26, 2025
Mortgage Rates Hold Steady Despite Modest Uptick in Treasury YieldAverage mortgage rates were flat in June, according to Freddie Mac. The average 30-year fixed-rate mortgage held at 6.82%, while the 15-year stayed at 5.95%. Compared to a year ago, the 30-year rate is down 10 basis points (bps), and the 15-year rate is 24 bps lower.
Jun 26, 2025
State-Level Employment Situation: May 2025Nonfarm payroll employment increased in 37 states in May compared to the previous month, while it decreased in 10 states and the District of Columbia. The three remaining states, Alaska, Delaware, and New Jersey reported no change. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 139,000 in May following a gain of 147,000 jobs in April.