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
Economics
Aug 18, 2026
Housing Starts Retreat on Market Headwinds
Overall housing starts decreased 12.4% in July to a seasonally adjusted annual rate of 1.24 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Energy
Aug 17, 2026
HUD Releases New HOME and HTF Energy Standards Following NAHB Win
Following key code victories secured by NAHB earlier this year, HUD has revised the energy standards that HOME Investment Partnerships Program (HOME) Participating Jurisdictions and Housing Trust Fund (HTF) grantees must meet for newly constructed housing.
Latest Economic News
Economics
Aug 18, 2026
Housing Starts Retreat on Market Headwinds
Housing starts fell in July as economic uncertainty, rising construction costs, labor shortages and elevated financing expenses continued to challenge builders.
Economics
Aug 18, 2026
Cash Purchases of New Homes Fall to Lowest Share Since 2007
New home sales rose in the second quarter but were lower than a year ago, according to the U.S. Census Bureau New Residential Sales release.
Economics
Aug 17, 2026
Consumer Credit Slowed in Q2
In the second quarter of 2026, consumer credit growth slowed over the quarter and was lower than a year ago. According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.17 trillion in the second quarter of 2026.