June Marks Highest Yearly Increase in Building Material Prices Since February 2023
Inputs to residential construction (goods less food and energy) — which represent building materials used in residential construction — rose 0.19% in June, according to the most recent producer price index (PPI) report from the U.S. Bureau of Labor Statistics. In May, the index fell 0.26% after rising 0.22% in April.
Year-over-year growth has continued to climb this year — June’s increase of 2.65% was the highest since February 2023. Despite overall inflation declining, prices for inputs to residential construction have accelerated since the start of the year, leaving home builders to continue to deal with higher building material prices.
Specific increases include:
- Softwood lumber rose 3.41% in June, after falling 5% in May.
- Gypsum building materials were unchanged for the second consecutive month but were up 2.32% over the year.
- Ready-mix concrete rose 0.45% in June after rising a revised reading of 0.26% in May.
Meanwhile, steel mill products fell 1.18% in June after rising 0.54% in May, and copper fell 2.67% in June, the first monthly decline since February of this year.
Jesse Wade, NAHB director of tax and trade policy analysis, provides more details in this Eye on Housing post.
Latest from NAHBNow
Membership
Jul 21, 2025
NAHB Mourns Passing of Rick HermanNAHB mourns the passing of Rick Herman, longtime Executive Officer of the Rochester Home Builders Association (RHBA) in New York. Rick joined RHBA 30 years ago and served as a tireless advocate for members in Rochester and around the state.
Construction Costs
Jul 18, 2025
Metals and Equipment Drove Material Prices Higher in JuneResidential building material prices rose in June, driven primarily by higher construction machinery and equipment part prices, based on data from the most recent Producer Price Index (PPI). Metal commodities also experienced significant increases, following recently implemented tariffs on steel and aluminum.
Latest Economic News
Economics
Jul 21, 2025
Use of Private Water and Sewer Systems in New Single-Family HomesThe share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.
Economics
Jul 21, 2025
Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five YearsFrom 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.
Economics
Jul 18, 2025
State-Level Employment Situation: June 2025Nonfarm payroll employment increased in 27 states in June compared to the previous month, while employment decreased in 23 states and the District of Columbia. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 147,000 in June following a gain of 144,000 jobs in May.