Building materials price growth slowed 60% in the U.S. in 2022 – UW GROUP

Building materials price growth slowed 60% in the U.S. in 2022

The National Association of Home Builders reports on its Eye on Housing blog that the producer price index (PPI) for inputs to residential construction less energy (i.e. building materials) rose 8.3% in 2022 (not seasonally adjusted). According to the latest PPI report—less than one-half the increase seen in 2021.

Highlights from NAHB’s report include:

The PPI for softwood lumber (seasonally adjusted) fell 6.9% in December and 26.1% over the course of 2022. Since increasing the first three months of the year, the softwood lumber index has fallen 45.8%.

The PPI for gypsum building materials declined 0.2% in December but increased 17.6% over the course of 2022. Although the 2022 price increase was more than three times the 25-year average, it was substantially lower than the 23% increase seen in 2021.

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