According to Associated Builders and Contractors’ analysis of federal Producer Price Index (PPI) data, overall construction input prices rose 1.7% from March to April and are now up 6.2% since January. The biggest drivers in April were energy and metals-related materials, including crude petroleum, natural gas, iron and steel, which can ripple through everything from transportation and asphalt to building systems and structural components.
As prices of materials rise, the cost of building both housing and its associated infrastructure also increases. For counties, this trend is significant as tightening budgets and growing state pressure to increase housing production are putting local governments in a difficult position.
