Building materials costs soared at a record pace last year due to pandemic-related troubles that overwhelmed global production and supply chains. According to the latest Producer Price Index (PPI) report, costs of materials are still sky-high. Here’s an updated look at building materials prices.
Building materials prices increased 20.3%, year-over-year, and have risen 28.7% since January 2020. 1
The price index of services inputs to residential construction increased 2.9% in January following a 1.3% increase in December 2021. The index is 8.9% higher than it was the past year and 24.1% higher than January 2020.
The PPI for softwood lumber (seasonally adjusted) increased 25.4% in January following a 21.3% increase in the past month. According to Random Lengths data, the “mill price” of framing lumber has more than tripled since late August.
Steel mill products prices declined 1.9% in January, the first decrease in nearly a year and a half. Even after last month’s decline, the overall price point is still double compared to one year ago.
The PPI for ready-mix concrete (RMC) gained 1.4% in January after increasing 0.6% in December. Before January 2021, year-over-year price increases had not exceeded 8.0% since December 2006.
In January, the PPI for gypsum products rose 3.4%. Gypsum products prices have gained 23.0%, year-over-year, the largest increase since data became available in 2012.
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We have all seen the headlines! Lumber prices have dropped 50%…