Construction material prices increased 2.2% in September and are up 11.2% on a year-over-year basis, according to Associated Builders and Contractors. Prices in August were 59.1% higher than in February 2020.
Nonresidential construction material prices rose 2.3% in September and increased 11.2% compared with one year ago. Softwood lumber prices are down 2% for the month and up 14.2% year over year. Iron and steel prices are up 1.5% for the month and 20.7% year over year. Natural gas rose 5.1% in September and is down 1.7% year over year. Crude petroleum rose 28.3% for the month and is up 71.1% year over year.
“Construction input prices have risen more than 11% over the past 12 months, the largest year-over-year increase in nearly four years,” said ABC Chief Economist Anirban Basu. “While higher fuel prices brought about by the conflict in Iran have driven a substantial portion of the increase, prices for tariffed materials like iron, copper and other metal products continue to rise rapidly.
“In light of this precipitous and ongoing increase in materials prices,” Basu continued, “it is unsurprising that more than 1 in 4 ABC contractors expect their profit margins to contract over the next six months, according to ABC’s Construction Confidence Index.”
