Building material price growth saw a slight decline at the start of the year, only to grow in February. This data comes as the Bureau of Labor Statistics released the Producer Price Index. Analysis from the National Association of Homebuilders (NAHB) reports that the price index for inputs to new residential construction are up 0.7% for the month. Compared to the month before, the price of goods used in new residential construction are also up 1.1% while the price of services are up 0.1%. While looking at the year before, inputs are up 3.4%, goods are up 3.0% and services are up 4.2%.
“Since the BLS collects pricing data during the week of the 13th, these figures were finalized before the onset of the conflict in Iran,” wrote Jesse Wade, CBE, economist and director of tax and trade policy analysis at NAHB. “The monthly increase in the index for final demand goods was the largest since it rose 1.6% back in August of 2023.”
Graphic Credit: NAHB
