U.S. Construction Costs Rising

Prices paid for goods used in residential construction in the U.S. increased 22.5 per cent compared to one year ago, with specific material prices advancing nearly 90 per cent, says data from the Bureau of Labor Statistics. Its ‘Producer Price Index’ shows building materials alone increased 9.4 per cent year over year and increased just 0.4 per cent in 2020. Steel products posted a 2.4 per cent price increase just last month, but it’s a less intense increase from the previous three months when steel prices averaged 15.9 per cent. For the past 12 months, steel product prices are up 75.4 per cent and rose 59.4 per cent this year alone. The price for softwood lumber (seasonally adjusted) rose 19.2 per cent ‒ the largest monthly increase since September 2020 ‒ and set a record high for the fourth consecutive month. Lumber prices have remained extremely volatile since the 88.5 per cent increase between April and September 2020.