Developers – Lumber prices, which skyrocketed over 300% in 2020-21, have finally stabilized, but other materials are still affected by high demand, inflation, and global supply chain disruptions.
By staying informed on these factors, you can better manage costs and maintain project timelines, ultimately ensuring successful projects.
Softwood Lumber
Lumber is the only major building material to see a significant price recovery. By the end of 2023, prices were about 20% higher than in 2019. However, with declines in 2024, lumber prices have returned to near-normal levels, following a surge of over 300% in 2020-21.
The seasonally adjusted PPI for softwood lumber fell 1.04% in July after rising 3.29% in June.
Steel Mill Products
The non-seasonally adjusted PPI for steel mill products fell for the second straight month, down 3.29% in July. Overall, steel mill product prices have fallen 36.99% since peaking back in December of 2021.
Ready-Mix Concrete
The seasonally adjusted PPI for ready-mix concrete rose 0.03% in July after falling 0.15% in June.
Gypsum Building Materials
The non-seasonally adjusted PPI for gypsum building materials increased 0.08% in July after no increase in June.
Copper and Copper Products
The non-seasonally adjusted special commodity grouping PPI for copper rose 0.56% in July after falling 2.79% in June.
Impact of Rising Material Costs on Home Insurance Premiums
- Home insurance premiums have surged over the past year, driven by the rising cost of building materials used for repairs.
- Although these prices have been growing for years, their impact on the insurance market is only now becoming evident.
How BASE4 Supports Developers with Cost-Effective Solutions
We help developers, general contractors, and factories find better ways to build through innovative technology, forward-thinking design, and offsite manufacturing. Our primary focus is providing top-tier services to our clients to ensure seamless collaboration and unparalleled results.
- We at BASE4 believe in a DESIGN SERVICE mindset—bringing standardization and manufacturing principles to an outdated system. With the design service-centered approach, we continually optimize the build process, building faster, cheaper, and more efficiently.
Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
