Building material costs have continued their upward surge, though the pace may be slowing. According to the Bureau of Labor Statistics Producer Price Index (PPI), building material costs are up 12% this June compared to June 2021. This represents a moderating pace of price increases, although material costs have increased 42% since January 2020.
Industry observers have watched the fluctuations in the softwood lumber market closely, and it appears that this key measure is among the leaders in price moderation. In the same PPI release, softwood lumber was down 23% and 35% since March 2022. This is welcome news for homebuyers who have encountered large price increases in lumber. The National Association of Home Builders estimates that the spike in softwood lumber prices has added over $14,000 in costs to the average single-family home since April 2020.
Beyond lumber, concrete costs have crept up and currently sit at an 11% increase compared to 2021. Paint remained flat in the most recent PPI report, while priced up over 30% since the beginning of the pandemic. Industry experts have reported that shipping and supply chain issues continue to impact prices.