The March price index for all inputs (goods, including energy, and services) to new residential construction rose 1.2% month-over-month and 3.8% year-over-year, according to the National Association of Home Builders’ analysis of data from the U.S. Bureau of Labor Statistics. The price of goods (including energy) used in new residential construction rose 1.8% month-over-month and 4.3% from last year, while the price of services rose 0.3% from February and 3.1% year-over-year.
As energy input prices in March rocketed up 21.4% month-over-month and 20.8% year-over-year due to the war in Iran (the most significant increase since prices rose 30.6% in June 2020), building material prices were up 0.4% month-over-month and 3.1% year-over-year.
Since building materials account for 93% of the goods index and energy only 7%, the year-over-year and month-over-month percent increases averaged out to 4.3% and 1.8% respectively.
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