Residential Construction Input Prices Paid in September

In September, the price trends for residential construction materials reversed, according to the latest Bureau of Labor Statistics data. The average prices paid for softwood lumber, OSB, and gypsum decreased for the month.

Residential construction goods input prices grew 0.2 percent after decreasing in July and August 2018, per the BLS Producer Price Index (PPI). The index for inputs to residential construction is up 5.2 percent in 2018 thus far, and is 10.2 percent higher than it was in January 2017, the National Association of Home Builders reports. Softwood lumber prices paid did go down in September, continuing the trend started in June, but is still at the highest levels on record, 18.7 percent above the 1997 record, per Random Lengths data.

Gypsum prices also reversed trend in September, falling 0.1 percent (seasonally adjusted) after a combined increase of 6.1 percent over the prior two months. Since the start of the year, the price index for gypsum products has increased 1.0 percent per month, on average. From January to September of 2017, prices paid for gypsum products rose 7.2 percent. The index has increased 8.1 percent over the same period in 2018.

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