Building Material Price Growth Slows in January

Residential building material prices rose at a slower rate in January, according to the latest Producer Price Index (PPI) from the Bureau of Labor Statistics (BLS) and an analysis from the NAHB. 

This was the first decline in growth since April of last year. Metal products continue to experience price increases while wood products are showing price decreases.

The Producer Price Index for inputs to new residential construction rose 0.7% in January, up 3.3% from last year. The price of goods used in the new residential construction was up 0.9% over the month and up 2.4% year over year. Meanwhile, the price for services was up 0.3% in January and up 4.7% from last year.

The goods component of the price index is more important to residential construction prices, representing around 60%. On a monthly basis, the price of input goods to new residential construction was up 0.9% in January. Building material prices were up 1.0% in January and up 3.3% from last year, marking the lowest year-over-year price change since July 2025.

Metal saw the largest year-over-year price increases, with metal molding and trim claiming the top spot with a 48.3% price increase from last year. Nonferrous metal and cable prices have also increased, rising 19.7%. Wood products saw price declines with prices for particleboard and fiberboard down 24.4%, treated wood products down 5.0% and softwood lumber down 3.3%.

Price inputs for services to residential construction reported a 0.3% increase in January and were up 4.7% year over year. Trade services, the largest component of the price index for service inputs to residential construction, was up 7.1% from a year ago. The transportation and warehousing services rose 2.0%, while prices for other services were up 1.1% over the year.

According to new experimental data published by the BLS within the PPI, domestically produced goods continue to have faster price growth compared to imported goods used in new construction. The index for domestic goods increased 3.0% year over year, while prices for imported goods have fallen 3.0% since last year.