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Building material prices were 5.5% higher in September than a year earlier, their highest year-over-year level since December 2022, according to an analysis by the National Association of Home Builders using Bureau of Labor Statistics data. Prices for all inputs to new residential construction, including goods and services, rose 10.3% over the year, with energy and service costs recording larger increases.
U.S. building material prices rose 5.5% in September from a year earlier, reaching their highest year-over-year level since December 2022, according to an analysis by the National Association of Home Builders of Bureau of Labor Statistics data. The broader price index for goods and services used in new residential construction increased 10.3% over the year, with energy and service costs rising faster than building materials alone.
Building material prices increased 0.4% from August, following a 0.9% monthly increase in prices for input goods in August. The report’s 5.5% annual figure refers specifically to building materials, while its wider measure includes other goods and services used in new home construction. Keeping those measures separate matters: the all-input index was up 2.0% for September and 10.3% from a year earlier.
Energy costs rose particularly sharply. Prices for energy inputs to residential construction increased 13.0% over the month and were 64.1% higher than a year earlier. No. 2 diesel fuel rose 24.2% in September and was up 115.2% year over year; regular unleaded gasoline increased 13.0% for the month and 66.1% over the year. These figures describe price changes in the specified categories, not the share of a builder’s total costs attributable to fuel.
Among other goods, particleboard and fiberboard prices rose 3.5% monthly and 7.8% annually. Softwood veneer and plywood increased 2.7% over the month and were 15.9% above September 2025. Mineral wool rose 2.8% in September, but its year-over-year increase was 1.6%. The differences show that September’s monthly movement varied by product.
Service inputs also contributed to the higher all-input measure. Their prices increased 2.2% in September and 11.3% over the year, the largest annual rise since April 2022, when service prices were up 17.7% year over year. Within services, trade services were 14.0% higher than a year earlier, and transportation and warehousing services were up 19.3%; other services rose 3.1%.
Higher Costs Reach Homebuilding
The figures point to continued cost pressure across several parts of residential construction, rather than a rise limited to lumber or another single material. Materials, fuel and services all recorded annual increases, while the broader input index rose more than the materials-only measure. Builders and suppliers may need to account for those changing input prices when estimating projects, setting bids or planning purchases.
The data do not show how much of the increase will be passed on to homebuyers, nor do they measure the final sale price of new homes. Construction costs are one factor in housing affordability alongside land, financing, labor, regulation and local market conditions. Still, sustained increases in the inputs used to build homes can make budgets less predictable and add pressure to project costs, particularly where fuel, freight or trade services are a large expense.
For hardware retailers and contractors, the product-level figures offer a more specific signal than the combined index. Plywood and particleboard prices were higher year over year, while mineral wool’s annual increase was smaller. Monthly and annual movements differ, so a one-month price change should not be treated as a forecast of the next month or as evidence that every product category is moving in the same direction.
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How September Compares With Recent Years
The September report draws on Bureau of Labor Statistics producer-price data, with the National Association of Home Builders analyzing how those prices relate to residential construction inputs. The figures track changes in prices paid for goods and services used in new residential construction; they are not a direct measure of retail prices or the cost of a completed home.
The report identifies 5.5% annual building-material inflation as the highest since December 2022, when that measure was 8.0%. For services, September’s 11.3% annual increase was the highest since April 2022. Those comparisons place the latest figures against recent history, but they do not establish a four-year record for every category or for the combined input index.
The distinction between the measures is central to the report’s headline. Building materials alone were up 5.5% year over year; the total index combining goods and services was up 10.3%. The report also states that input goods rose 1.8% in September, after a 0.9% monthly increase in August. Those figures cover different groupings and periods, and should not be treated as interchangeable.
What the Price Index Cannot Show
The figures establish changes in measured input prices, but the report does not quantify their effect on the cost of a typical home, individual construction budgets or retail prices charged to consumers. It also does not say how much contractors or suppliers have absorbed versus passed on to customers. The extent of any effect on building plans or home prices is therefore not established by these data.
The source material does not provide September price changes for every construction product, geographic market or type of project. The reported national figures can mask local variation and differences between suppliers. It is also unclear from the report how long the increases in energy and service prices will persist; a single month of data cannot answer that question.
The source describes the September figures as based on BLS data analyzed by NAHB, but does not include a detailed table or methodology in the material provided. Readers should distinguish the reported observations from broader conclusions about future costs, housing supply or affordability.
Watch for the Next Price Release
The next useful comparison will be the subsequent monthly release of producer-price data and any follow-up analysis from NAHB. Those figures can show whether September’s monthly increases in energy, goods and services continued, moderated or reversed. Year-over-year comparisons will also change as new months enter the calculation and earlier months drop out.
Builders, suppliers and retailers can track the categories most relevant to their projects, including fuel, transport, plywood and insulation materials, rather than relying on the combined index alone. The September report does not provide a forecast or state what prices will do next, so any expectation about future costs should be treated as uncertain until more data are available.
Key Questions
How much did building material prices rise in September?
Building material prices rose 0.4% from August and were 5.5% higher than a year earlier, according to the NAHB analysis of BLS data.
What does the 10.3% increase measure?
It is the year-over-year increase in the price index for all inputs to new residential construction, combining goods and services. It is not the increase for building materials alone, which was 5.5%.
Which costs rose most sharply?
Energy inputs increased 13.0% in September and 64.1% over the year. No. 2 diesel fuel was up 115.2% year over year, while transportation and warehousing services rose 19.3%.
Does the report mean new homes will cost 10.3% more?
No. The 10.3% figure tracks prices for inputs used in new residential construction, not completed home prices. The report does not calculate how much builders will pass on to buyers.
Source: rss
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