Construction material prices fell 0.3% in November and are down 0.8% on a year-over-year basis, according to Associated Builders and Contractors. Prices in November were 38.8% higher than in February 2020.
Nonresidential construction material prices fell 0.3% from October to November and decreased 0.4% compared with one year ago. Softwood lumber prices are down 19.7% year over year and 5.1% from October to November. Iron and steel prices are down 3.6% year over year and 0.1% for the month. Natural gas rose 24.1% from October to November and is up 78.1% since February 2020. Crude petroleum fell 9.5% for the month and is up 58.9% since February 2020.
“Construction input prices declined for the second straight month in November,” said ABC Chief Economist Anirban Basu. “While much of the recent decline is due to record domestic oil production and the resulting precipitous decline in gas and diesel prices, other commodities like iron and steel and lumber products are currently more affordable than they were at the same time last year.
“Falling, or at the very least stable, input prices should help to control construction cost increases in the coming quarters,” Basu continued. “This is a welcome development for an industry still dealing with extraordinarily elevated financing costs and rising labor costs due to ongoing worker shortages.”
