Building material costs have climbed sharply, hitting their highest levels in nearly two years—signaling growing strain on the construction and housing industries.
According to the National Association of Home Builders (NAHB), residential building material prices rose year‑over‑year in July, marking the largest annual increase in over two years . Notably, parts for construction machinery and metal molding/trim soared more than 25% compared to the same time last year.
Supporting this upward trend, Producer Price Index data from the U.S. Bureau of Labor Statistics shows construction input prices climbed 2.1% overall and by 2.5% for nonresidential construction over the past year, with monthly increases continuing into June. Specific surges include aluminum mill shapes (+6.3%), steel mill products (+5.1%), and fabricated structural metals such as rebar and joists—some spiking over 8%.
This resurgence follows a relative cooldown earlier in 2024, when material price growth had slowed to modest levels . Analysts warn that the combination of escalating raw material costs, supply-chain constraints, and tariff pressures could fuel further volatility across the building sector.
