Construction and building material prices rise in July

Construction and residential building material prices showed varied trends in July. Residential building material prices, excluding energy, rose 0.4% in July, marking the highest year-over-year increase since December 2022. Specifically, softwood lumber prices saw a significant monthly increase of 7.4%, bringing their year-over-year rise to 17.3%.

In the nonresidential sector, construction input prices increased by 0.1% in July. While energy subcategories like crude petroleum and unprocessed energy materials saw decreases, natural gas prices rose by 10.4%. Overall, construction input prices remain 7.4% higher than a year ago, while nonresidential construction input prices are up 7.2% annually.

Economists note that while some monthly fluctuations were tempered by dips in fuel prices, ongoing increases in materials such as lumber, iron, and steel suggest that prices will likely continue to climb in the coming months.