The prices of goods used in residential construction increased 1.4% in March, following an upwardly revised increase in both January and February, according to the Producer Price Index (PPI) report released by the Bureau of Labor Statistics. According to the NAHB, building material prices increased 20.4% on a year-over-year basis and have increased 33% since the start of the pandemic.
The price index of services inputs to residential construction registered even steeper increases, rising 3.2% in March, 5.1% in February, and 6.2% in January. As a result, the price index of services used in home building (including trade services, transportation and warehousing) went up 15.2% since the start of the year. Year-over-year, the index increased 18.5%. Counting since the start of the pandemic, services prices are now 39% higher.
The PPI for softwood lumber (seasonally adjusted) increased 6% in March following a 2.6% increase in February and 25.6% jump in January. As a result, the index increased 36.7% over the first three months of 2022. Since reaching its most recent trough in September 2021, prices have almost doubled, rising 90.4%.
The PPI for gypsum products (SA) increased 1.6% in March. Year-over-year, gypsum products prices are 20.8% higher.
