Residential Building Material Prices Hit 32-Month High in August

Washington, DC, September 12, 2025-Price growth for residential building materials rose for the fourth straight month in August, reaching its highest level since January 2023, reports the National Association of Home Builders. 

“Across domestic inputs goods and services into residential construction, service prices decreased in August while goods prices slightly advanced.  

“Prices for inputs to new residential construction-excluding capital investment, labor, and imports-fell 0.1% in August, matching the decrease of 0.1% in July. These figures are taken from the most recent Producer Price Index (PPI) report published by U.S. Bureau of Labor Statistics. The PPI measures prices that domestic producers receive for their goods and services; this differs from the Consumer Price Index which measures what consumers pay and includes both domestic products as well as imports.  

“The inputs to the new residential construction price index grew 2.3% from August of last year. The index can be broken into two components-the goods component increased 2.6% over the year, while services increased 1.9%. For context, the total final demand index, which measures all goods and services across the economy, increased 2.6% over the year, with final demand with respect to goods up 2.1% and final demand for services up 2.9%. Compared to July, the August results indicate services price growth slowed while goods price growth rose according to producer prices.”