A majority of builders agree that building a home is 15% more expensive now than it was this time last year. According to the National Association of Home Builders’ (NAHB) July 2026 NAHB/Wells Fargo Housing Market Index (HMI), builders feel the pain of these increases, but especially the smaller builders. The HMI results aligned with reality, with 28.4% of builders reporting that common material prices increased by 5% to 9.99%. Analysis of July’s PPI indicated that the price of goods increased 6.7% year over year. “Not all builders experienced the…
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Building material prices see growth in July
According to the National Association of Home Builders’ (NAHB) Producer Price Index, residential building material prices rose 0.4% in July 2026 and were up 5.0% from last year. The price index for inputs to new residential construction fell 0.1% in July, but was up 6.5% from the year before. The price of goods used in new residential construction, including energy, was up 0.1% over the month and up 6.7% from last year, while the price of services was down 0.3% over the month and up 6.2% from last year. Among…
Read MoreArchitectural details are more popular in exterior remodels
When clients look to remodel, it’s often for two reasons: cosmetic or performance, or more often a mix of both. B&B Siding and Roofing, a contractor serving New Jersey and Staten Island, noticed that today’s modern buyers are prioritizing curb appeal and detail in exterior treatment. Fiber cement siding is a growing choice among clients, noted B&B. This aligns with the National Association of Home Builders’ study on exterior material trends. While vinyl remains the overall pick, fiber cement recorded steady growth from 3.20% to 22.61% over the past 25 years.…
Read MoreIndustry prepares for new tariffs on Canadian goods
Announced in mid-July, a new 50% tariff on Canadian goods, including lumber, will go into effect on Aug. 19, 2026. That is, unless the two countries strike a different deal in a week. As first reported by North Country Public Radio (NCPR) in Canton, New York, a community close to the Canadian Border is preparing for the effects. James Putman, owner of JP Building Supply, which provides local homebuilders and contractors with building materials and lumber, noted that even though his business was doing well, he imports about a third…
Read MoreWhat new 50% tariffs on Canadian goods mean for contractors
President Trump announced additional tariffs of 50% on a variety of Canadian goods. This move will likely broadly affect the residential construction industry’s bottom line, already facing higher construction material costs throughout 2026. Canadian goods affected in this deal are lumber, including plywood and engineered wood products, cermets, plastic, rubber, furniture, among other items. The administration announced that this move is to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce. It will go into effect beginning August 19, 2026. “While contractors remain…
Read MoreVinyl siding leads exterior wall materials
Research from the National Association of Home Builders (NAHB) shows that vinyl siding is the most used exterior wall material for single-family homes. The material is used on over a quarter of all homes, overtaking stucco for only the second time since 2018. The study also shows a strong trend of growth for fiber cement siding, steadily increasing from 3.20% to 22.61% over the past 25 years. The use of brick siding declines, falling from 24.5% in 2012 to 16.76% in 2025. The popularity is divided geographically, on par for…
Read MoreInput prices fall, builders to expect stronger margins
According to a recent release from the Associated Builders and Contractors (ABC), input prices in residential construction declined 1.1% month over month in June. While overall input prices are up 7.6% compared to a year ago, energy prices fell 12.1% for crude petroleum and 8.1% for unprocessed energy materials. Natural gas prices did increase 16.6% in the month but could cool off in the next few months as oil prices fall globally. The slight decrease in June allows for cautious optimism for the building community in Q3, with a return…
Read MoreResidential building material prices increase
Wholesale prices of materials used in residential construction increased in May 2026, a direct result of rising energy costs. Residential building material prices rose at their highest yearly rate since January 2023, as prices were up 4.4% from 2025 and up 0.7% over May. The price index for inputs to new residential construction rose 1.3% in May and was up 6.9% from last year. The price of goods used in new residential construction, including energy, was up 2.1% over the month and up 8.3% from last year, while the price…
Read MoreCanadian lumber duties expected to decline
The U.S. Department of Commerce (DOC) published its plans to lower antidumping and countervailing duties on Canadian softwood lumber. This comes as a scheduled review process of existing tariffs. The DOC presented a decrease of antidumping duties by nearly 10%, from 20.56% to 10.66%. While the countervailing duties are only expected to decrease by less than half a percent from 14.63% to 14.17%, the combined rate would decrease from 35.16% to 24.83%. DOC will likely issue final results of the plans in 120 days, around when lower duties would take…
Read MoreUnderstanding construction material costs
The elevated building material costs is a current headwind for the industry. However, understanding where the rise comes from, building close relationships with dealers and transparency with clients can help you keep your projects on track. According to analysis from Associated Builders and Contractors (ABC) construction input prices are 2.8% higher than a year ago. For small and mid-sized firms, simply absorbing these costs is not an option. Many ABC Carolinas members reported their projects were cancelled, rebid or significantly scaled back after updated quotes with higher budgets. “Start with…
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