Building Materials Prices Decline for Second Consecutive Month

2022-11-15T14:30:03-06:00

The prices of building materials decreased 0.2% in October (not seasonally adjusted) following a 0.5% decline in September according to the latest Producer Price Index (PPI) report. The index has decreased four of five months for the first time since 2015. The PPI for goods inputs to residential construction, including energy, was led 0.2% higher by prices of diesel fuel (+9.5%) and unleaded gasoline (+5.7%). The price index of services inputs to residential construction decreased 0.7% in October, the seventh consecutive monthly decline. Prices have fallen a total of 14% since the index last increased in March 2022 and are just 1.4% higher than they were a year ago. Softwood Lumber The PPI for softwood lumber (seasonally adjusted) fell 1.7% in October following 5.5% and 3.1% declines in August and September, respectively. Softwood lumber prices are 4.4% higher than they were a year ago but have fallen 41.3% since March. The index remains 3.0% above pre-pandemic levels. Steel Mill Products Steel mill products prices decreased 6.6% in October and have fallen 21.6% since May 2022.  The index is at its lowest level since May 2021 after five straight monthly declines, each of which has been larger than the last. Ready-Mix Concrete The PPI for ready-mix concrete (RMC) increased 0.4% in October but, similar to steel mill products, the pace of increases has slowed each of the past three months. The index has climbed 9.1%, year-to-date, the largest October YTD increase in the series’ 34-year history. The monthly increase in the national data was entirely driven by a 2.0% price increase in the Northeast region. Prices declined in the Midwest (-0.4%) and South (-0.3%) and were unchanged in the West. Gypsum Building Materials The PPI for gypsum building materials edged 0.2% lower in October—just the second monthly decrease since September 2020. The index is 45.6% higher than its January 2020 level. Transportation of Freight The price of truck, rail, and ocean transportation of freight each decreased in October. Trucking freight prices fell 1.4%–the fifth consecutive decline—while the indexes for rail and deep sea transportation of freight decreased 0.7% and 1.8%, respectively. Year-to-date, the prices of ocean, rail, and truck freight transportation have increased 25.2%, 6.5%, and 6.0%. Related ‹ Single-Family Permits Decline in September 2022Tags: Building Materials, building materials prices, construction costs, cost of construction, cost of materials, drywall, Gypsum, inflation, lumber, ppi, producer price index, ready-mix concrete, steel

Building Materials Prices Decline for Second Consecutive Month2022-11-15T14:30:03-06:00

Stucco and Vinyl were the Most Common Siding Materials on New Homes in 2021

2022-08-29T10:19:17-05:00

By Ashok Chaluvadi on August 29, 2022 • According to the annual data from the Census Bureau’s Survey of Construction (SOC), stucco was the most common principal siding material on new single-family homes started in 2021 (28 percent),  followed by vinyl siding (24 percent), fiber cement siding (such as Hardiplank or Hardiboard (23 percent) and, brick or brick veneer (19 percent). Far smaller shares of single-family homes started last year had wood or wood products (4 percent) and stone, rock or other stone materials (1 percent) as the principal exterior wall material. The Census Bureau’s SOC data is available by the nine census divisions and there are substantial differences in the use of siding across divisions. Although stucco was the most common siding material in the country as a whole, its popularity is concentrated in a few parts of the country. In 2021, vinyl siding was the most widely used primary exterior material in four northern census divisions. Vinyl siding was used on 74 percent of the new homes started in the Middle Atlantic, 66 percent in New England, 63 percent in the East North Central and 45 percent in the West North Central. Stucco was the most commonly used primary exterior wall material in the Pacific, Mountain and South Atlantic divisions in 2021: 63 percent, 53 percent and 40 percent, respectively, of the new single-family homes started in those areas used it. Brick or brick veneer was the most common exterior siding material in East and West South Central divisions. In the West South Central, 62 percent of the new single-family homes started in 2021 used brick or brick veneer as the primary exterior material, compared to 42 percent in the East South Central. Related ‹ Student Housing Investment Edges Down in the Second Quarter of 2022Tags: Building Materials, construction, economics, eye on the economy, home building, housing economics, single-family

Stucco and Vinyl were the Most Common Siding Materials on New Homes in 20212022-08-29T10:19:17-05:00

How Lumber Prices are Affecting Homebuilders

2021-05-13T12:28:42-05:00

They say a picture can tell a thousand words. Well, this new visual representation of the impact of lumber pricing on homebuilders certainly fits. Published on May 8th by Visual Capitalist, the amazing infographic shows the impact of lumber

How Lumber Prices are Affecting Homebuilders2021-05-13T12:28:42-05:00

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