The producer price index for new residential construction increased 14.2% compared with October 2020, according to an analysis by the Associated General Contractors of America. Month-over-month, the residential construction producer price index dropped 0.1%.
New nonresidential construction’s producer price index ticked up 1.0% month-over-month in October and increased 21.1% compared with October 2020. AGC said the price increases are beginning to impact more projects.
“After being battered by unprecedented price increases for many materials, contractors are finally passing along more of their costs,” stated Ken Simonson, AGC’s chief economist. “Meanwhile, supply-chain bottlenecks and labor shortages continue to impede contractors’ ability to finish projects.”
“Many products, as well as trucking services, contributed to the extreme runup in construction costs,” AGC added. Trucking and freight costs climbed 16.3% year-over-year and 4.2% compared with September.
Lumber and plywood costs, which recorded record-highs earlier this year, saw a 3.2% jump in October but declined 3.9% compared with October 2020.
The full AGC report can be found here.
