Building Materials Prices Up More Than 19% Year over Year

Material Costs
Advocacy Icon
Published
PPI Graph - April 2022

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 0.5% in April, following upwardly revised increases of 1.9% and 2.4% in March and February, respectively.

This adds up to an 4.9% increase in building materials prices since the start of 2022. Building materials prices are up 19.2% year over year and have risen 35.6% since the start of the pandemic.

Specific material increases include:

  • Softwood lumber: The PPI for softwood lumber (seasonally adjusted) declined 15.6% in April, following a downwardly revised 5.4% increase in March and a 2.5% gain in February. As a result, the index is down 8.9% over the first four months of 2022. Since reaching its most recent trough in September 2021, prices have risen 60.4%.
  • Steel products: Steel mill products prices (not seasonally adjusted) climbed 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 derivative steel products after increasing 128% in 2021.
  • Ready-mix concrete: The PPI for ready-mix concrete (RMC) prices rose 1.3% (seasonally adjusted) in April after a small decline in March. The index has 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 flat in April. The prices of gypsum products are up 17.8% year over year and have increased 23.5% since January 2021.

David Logan. NAHB director of tax and trade policy analysis, provides more in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe