Material Prices for New Residential Construction Surge 20.6% Year-Over-Year

Material prices for new residential construction increased 20.6% between March 2021 and March 2022, according to an analysis by the Associated General Contractors of America.

New nonresidential construction material prices increased 21.5% year-over-year in March.

The AGC stated the continuing Russian war in Ukraine will likely keep input costs elevated for many months ahead, “if not longer.”

“Construction firms have been burdened with cost increases of 20% per year or more since early 2021,” stated Ken Simonson, AGC’s chief economist. “Since contractors can seldom pass along increases on projects that are underway, these extreme price hikes threaten the viability of many firms.”

Producer price indexes for lumber and plywood jumped 20.9% year-over-year, and architectural coatings prices grew 20.6%.

The full AGC report can be found here.