Hardware Retailing The Industry's Source for Insights and Information
Prices for residential building materials continue to soar, according to the latest Producer Price Index release from the Bureau of Labor Statistics and an analysis by the National Association of Home Builders. Price growth has been above 3.0% since June, despite a weak new residential construction market.
Metal products continue to see price increases while ready-mix concrete and softwood lumber have experienced price declines over the past year.
The Producer Price Index for final demand increased 0.2% in November, up from the 0.1% increase in October. The index for final demand goods increased 0.9% in November. Over 80% of the November increase is due to prices for final demand energy, which was up 4.6% in November.
The price index for inputs to new residential construction rose 0.1% in November, up 4.2% from last year. The price of goods used in new residential construction was up 0.4% over the month and 3.4% from last year.
The largest year-over-year price increases continue to show in metal products. Metal molding and trim prices were up 48.2% from last year. Ready-mix concrete prices were down 0.7% compared to a year ago, likely a result of recent stagnation in construction spending. Softwood lumber prices were down 8.0% in November from last year as prices continue to remain low.
Prices for service inputs to residential construction reported a decline of 0.4% in November. On a year-over-year basis, service input prices were up 5.6%.
The latest available data, for August 2025, showed that domestically produced goods continue to have faster price growth compared to imported goods used in new construction. On a year-over-year basis, the index for domestic goods increased 2.5%, while prices for imported goods fell 0.7% over the same period.
