June Marks Highest Yearly Increase in Building Material Prices Since February 2023

Inputs to residential construction, goods less food and energy, rose 0.19% in the month of June according to the most recent Producer Price Index (PPI) report published by the U.S. Bureau of Labor Statistics and an analysis conducted by the National Association of Home Builders (NAHB). The index for inputs to residential construction, goods less food and energy, represents building materials used in residential construction. Despite overall inflation declining, prices for inputs to residential construction have accelerated since the start of the year, leaving home builders to continue to deal with higher building material prices.

In May, the index fell 0.26% after rising in April 0.22%. Over the year, the index was up 2.65% in June. Year-over-year growth has continued to climb this year, June’s increase was the highest since February of 2023. The seasonally adjusted PPI for softwood lumber rose 3.41% in June, after falling 5% in May. Prices for softwood lumber are 7.41% lower than June 2023. Lumber prices remain lower than the peaks and valleys of 2020 through 2022 but remain higher than 2019 according to the index.

Source: The Dealers’ Digest is a bi-weekly executive summary of critical information related to activity in the federal legislative and regulatory arenas that the lumber and building material (LBM) dealer community needs to be aware of. In addition, the newsletter shares updates on association activities and highlights the critical work that we do each and every day on behalf of the entire LBM industry.