Building material prices increased 20.4% year over year, according to the latest Producer Price Index (PPI) report from the Bureau of Labor Statistics. Since January 2020, prices have risen 31.3%. Over the past months, the PPI has increased 10.6%. Several categories, including gypsum, softwood lumber, and paint, either posted smaller gains in February or declined compared to high price growth in recent months, according to the NAHB. Overall, the prices of goods used in residential construction increased 1.6% in February.
The PPI for gypsum products declined 1.9% in February, snapping an 11-month streak of increases during which the index climbed 31.4%. Gypsum products prices are up 20.7% year over year.
The PPI for softwood lumber (seasonally adjusted) increased 2.6% in February following a combined 28.9% increase over the two months prior. Since reaching its most recent trough in September 2021, prices have increased 79.5%. According to Random Lengths data, the “mill price” of framing lumber has more than tripled since late August.
After a 12-month period during which the prices of exterior and interior paint increased 30.3% and 21.2%, respectively, paint prices held relatively steady in February. The prices of exterior architectural coatings gained 0.1% and interior architectural coatings PPI rose 0.3%.
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