Softwood lumber prices continue to fall in 2022, but the drop has yet to offset the price increases from the previous price surges caused by the pandemic supply issues. On top of that, additional building material price increases pushed overall material prices to climb again in August, up nearly 1%.
According to the National Association of Home Builders (NAHB), gypsum building materials increased 3.3% in August, the price for distribution transformers increased by 40% over the past 12 months and ready-to-mix concrete climbed 1.6% for the month of August.
While lumber prices have fallen 32.7% year-to-date, prices remain 46.4% above pre-pandemic levels, according to NAHB.
NAHB notes that building materials prices have climbed 4.9% through the first eight months of 2022 and 14.3% over the past year. The Producer Price Index for goods inputs to residential construction, including energy, decreased 0.9% in August following a 1.5% decline in July.