Construction materials prices continued to increase in November, rising for nearly every type of construction material, according to an analysis by the Associated General Contractors of America.
The producer price index for new residential construction—the prices charged by material producers and service providers—jumped 17.3% year-over-year, and the producer price index for new nonresidential construction grew 22.1% year-over-year.
A number of material costs had double-digit growth compared with November 2020, including the index for architectural coatings, which increased 12.4%, and the index for lumber and plywood, which had a 12.2% surge. Trucking costs increased 16.3%.
“Prices for nearly every type of construction material are rising at runaway rates,” stated Ken Simonson, AGC’s chief economist. “These costs are compounding the difficulties contractors are experiencing from long lead times for production, gridlocked supply chains and record numbers of job openings.”
The full AGC report can be found here.
