Residential building material price growth rate drops for the first time since April 2025. According to the National Association of Homebuilders’ analysis of the Producer Price Index release from the Bureau of Labor Statistics, building material prices are increasing, but at a lower rate than the year before. The Producer Price Index final demand increased 0.5% in January, a continuation of the 0.4% increase in December. Specifically in the industry, metal products are experiencing the largest price growth while lumber and wood material products are stabilizing.
“The goods component has a larger importance to the inputs to residential construction price index, representing around 60%,” said Jesse Wade, CBE, economist and director of tax and trade policy analysis at NAHB. “On a monthly basis, the price of input goods to new residential construction was up 0.9% in January.”
