Prices paid for building materials used in residential construction increased by 0.7% in July (not seasonally adjusted) according to the latest Producer Price Index (PPI) released by the Bureau of Labor Statistics, the National Association of Home Builders reports.
Prices paid for building materials have declined an average of 0.1% per month over the last 12 months, compared to an average monthly increase of 0.8% during the same period 2017-2018. The price of goods used in residential construction has risen 2.8% in 2019, roughly half the pace of 2018 increases, year-to-date.
The PPI report shows that softwood lumber prices rose 2.0% (not seasonally adjusted) in July—the first increase in four months. Even after the increase, the index for softwood lumber is nearly 20% lower than it was in July 2018.
The price index for gypsum products reversed its downward trend in July, increasing 2.2% (seasonally adjusted). Gypsum prices have increased in four of the prior 12 months, but have declined by 4.1% and 7.3% since January 2019 and July 2018, respectively.
Construction input prices dropped in June which was the first time in nearly three years that input prices had fallen on a year-over-year basis.
See more at NAHB’s Eye on Housing blog.
