Building Material Prices Continued Climb in July
The prices of building materials rose 0.4% in July (not seasonally adjusted) even as softwood lumber prices increased 2.3%, according to the latest Producer Price Index (PPI) report. Prices have surged 35.7% since January 2020, although 80% of the increase has occurred since January 2021.

Price changes for specific products include:
- Concrete products: The PPI for ready-mix concrete (RMC) gained 2.5% in July and has increased in 17 of the last 18 months. The index has climbed 6.8%, year-to-date, the largest YTD July increase in the series’ 34-year history. The PPI for finished concrete products has climbed 14.4% over the past 12 months and the price of structural concrete block is up 12.9% over the same period. Concrete pipe and prestressed concrete products prices also have climbed 21.0% and 29.9%, respectively, since July 2021.
- Softwood lumber: The PPI for softwood lumber (seasonally adjusted) saw a modest increase (+2.3%) in July, its first increase in four months. Prices have fallen 28.2% year-to-date, although the extent to which the decrease has reached home builders and remodelers is unclear.
- Gypsum building products: The PPI for gypsum products held steady in July after increasing 0.1% in June and 7.1% in May. Prices have soared 22.6% over the past year. After a quiet 2020, the price of gypsum products climbed 23.0% in 2021 and is up 7.6% through the first half of 2022.
- Steel mill products: Prices decreased 3.7% in June following a 1.7% decline in June. over the two prior months. Although the index has fallen 10.1% since reaching its all-time high in December 2021, it is nearly twice the January 2021 level.
David Logan, NAHB Director of Tax and Trade Policy Analysis, provides additional information in this Eye on Housing blog post.
Latest from NAHBNow
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.
Aug 20, 2025
Custom Home Building Grows as Broader Housing Market StrugglesAn analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.
Latest Economic News
Aug 21, 2025
Existing Home Sales Rise in JulyExisting home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).
Aug 21, 2025
New and Existing Homes Remain Largely Unaffordable in Second QuarterWhile new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
Aug 20, 2025
Retreat for Single-Family Built-for-Rent HousingSingle-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.