Editor's Note
This editor’s note highlights the key facts and market implications behind “Construction Materials Prices Rise Despite Lumbe”, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
The producer price index (PPI) report from the Bureau of Labor Statistics (BLS) stated that construction materials prices rose 0.1 percent month-over-month in September on a seasonally adjusted basis. The intermediate demand index of components and materials for construction was up 2.8 percent from its year-earlier level. Overall prices for processed goods for intermediate demand were up 0.4 percent this month. The overall processed goods for intermediate demand index was 3.8 percent higher than its year-earlier level. For reference, the changes in these indexes compare with a 0.3 percent month-over-month rise and a 3.0 percent year-over-year rise in the seasonally adjusted all-items consumer price index (CPI-U) in September. Yield Pro compiled the BLS reported changes for our standard list of construction materials prices. These are prices of materials which directly impact the cost of constructing an apartment building. The first two right hand columns of the table provide the percent change in the price of the commodity and the percent change in price from August (1 Mo PC Change) and from a year earlier (12 Mo PC Change). If no price data is available for a given commodity, the change is listed as N/A. The pre-COVID column lists the change in the current construction materials prices relative to the average of prices from December 2019 through February 2020, before the pandemic impacted the economy. This provides a longer-term view of construction materials price trends.
Key Commodity Price Changes
Softwood lumber prices fell 4.2% month-over-month and were down 1.4% year-over-year, but remain 13.2% above pre-COVID levels. Hardwood lumber prices fell 0.1% month-over-month but rose 6.3% year-over-year and are 39.0% above pre-COVID levels.
Plumbing fixtures and fittings prices were unchanged month-over-month, rose 7.2% year-over-year, and are 28.5% above pre-COVID levels. Ready mix concrete prices were essentially unchanged month-over-month, rose 0.4% year-over-year, and are 37.5% above pre-COVID levels. Gypsum product prices were unchanged month-over-month, rose 0.7% year-over-year, and are 49.0% above pre-COVID levels. The prices used by the BLS in compiling the indexes are collected on the Tuesday of the week containing the 13th day of the month. In September that would have been September 9. In the October report, the data collection date will be October 14. The softwood lumber price index resumed its recent downward movement this month after a break in the trend last month. It was reported to fall 4.2 percent, aided by a 0.33 percent upward revision to last month’s index. The index is now down 12.2 percent since reaching a recent high in March. After falling 8.6 percent between March and July, the soft plywood price index has risen for the last 2 months. However, the 2-month total rise was only 0.4 percent. The price indexes for these items were soft this month, with only nails seeing a price increase. The index for nails rose 0.4 percent.
The price index for hot-rolled steel bars was reported to fall 1.1 percent this month. In addition, the price indexes for the last two months were revised lower, last month by 4.8 percent and the month before by 2.8 percent. While last month’s data showed a rise in the index of 8.8 percent over the prior 3 months, this month’s data puts the 3-month price rise at only 0.7 percent. The price index for copper wire was reported to fall 4.3 percent this month. It is now at its lowest point since March. For the fourth consecutive month, no price index was reported for power wire. As has often recently been the case, the price index for plumbing fixtures and fittings was reported to be unchanged this month. However, as has also often been the case, the prior month’s index saw a significant revision. In this case the indexes for the last two months were both revised lower by 1.6 percent. The price index for major appliances fell 0.4 percent for the month. Its increase since July 2017 is now below that of the CPI-U. After increasing sharply since March, the price index for furnaces and heaters fell this month, declining 0.9 percent. The BLS has now not reported a price index for electrical lighting fixtures for 3 consecutive months.
Source: Read the original article | Published: December 02, 2025