Combining goods and services, the price index for inputs to new residential construction was up by 2.0% in September and 10.3% higher than in 2025. The price of goods used in new residential construction, including energy, increased by 1.8% over the month and increased by 9.7% from last year, while the price of services was up 2.2% over the month and up 11.3% from last year. Prices for service inputs to residential construction rose 2.2% in September. On a year-over-year basis, service input prices were up 11.3%, the highest since…
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U.S. drops Canadian lumber duties
A major win for contractors and builders under pressure from elevated building material costs, the U.S. Department of Commerce dropped duties on Canadian softwood lumber imports. Announced on Oct. 14, the final determination lowers the combined duty rate from 35.16% to 24.75%. The cumulative duty and tariff burden decreases from 45.16% to 34.75%, as the separate 10% Section 232 tariff remains in effect. “While the reduction represents a positive development for the industry, Canadian softwood lumber continues to face substantial trade barriers,” wrote the National Lumber & Building Material Dealers…
Read MoreFraming lumber prices decrease to $506.76 per 1,000 board feet
According to Madison’s Lumber Price Index, as of Sept. 25, 2026, framing lumber prices decreased to $506.76 per 1,000 board feet, down from the previous week. This price was 1.8% week over week, down 2.8% month over month, but up 4.5% year over year. Softwood lumber prices have been volatile in recent years due to increased demand, rising tariffs, supply-chain bottlenecks and insufficient domestic production. To address the high lumber prices, the National Association of Home Builders has advocated for negotiating a long-term deal with Canada to reduce tariffs and…
Read MoreWood framing continues to dominate single-family construction
According to the National Association of Home Builders’ analysis of 2025 Census Bureau data, in 2025, wood framing accounted for 94% of all completed single-family homes. Approximately 947,000 wood-framed homes were completed last year, while the wood-framed market share remained unchanged at 94%. Concrete-framed homes represented 5% of completions, while steel-framed homes had a 25% increase from 2025, with 5,000 completions. Non-wood-based framing methods remain concentrated in the South due to residential resiliency requirements. Concrete-framed homes made up 9% of all single-family home completions in the South. Approximately 60% of…
Read MoreNAHB supported Housing Tariff Exclusion Act introduced in House
A new bill introduced in the House by Rep. Nanette Barragán, the Housing Tariff Exclusion Act (H.R. 10416), would create a tariff exemption process for building materials. With building material costs rising, tariffs further strain builder margins and ultimately lead to higher prices for buyers. “This bill would help relieve tariff-driven cost pressures on building materials, provide businesses with greater certainty and support broader efforts to improve housing affordability,” said NAHB Chairman Bill Owens. The Housing Tariff Exclusion Act would establish a Commerce Department process to request an exception and grant refunds…
Read MoreHow builder size impacts material costs
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…
Read MoreBuilding 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 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…
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