Cost of Building Supplies Falls in April

Is relief on the way for homebuilders?

Builders are constantly citing the high price of supplies as being an obstacle over the past few years, but the average price of supplies dropped slightly in April. According to the National Association of Home Builders, the prices of building materials fell 0.2% in April compared to March and rose 0.5% year-to-date, the smallest jump in three years. Despite the prices on several products rising, there has been a slowdown in the pace of growth.

The price for gypsum building materials dropped 1.1% in April. However, their cost remains higher compared to 2022’s levels. Prices are up 12.1% year over year, but have remained more stable in the last six months.

The price point for softwood lumber rose 6.2% in April, but remains 40.1% below April 2022 levels. This was the first increase in nine months, as prices have remained mainly stable. Ready-mix concrete prices also rose, jumping 0.4% in April. The cost has grown 12.4% over the past year. Year-to-date, prices have risen 7.8% in the Northeast and jumped 5.4% in the past 12 months here as well. Also, steel mill products rose 3.1%, but the cost is down 14.8% year over year. The cost of transportation of materials has also fallen, with trucking freight prices dropping 8.5% over the past year.

Additionally, the demand for construction workers has dropped. NAHB found that the number of construction job openings fell from 404,000 to 341,000 in March. Despite less need for construction workers, NAHB reported that the need for labor, materials and lots should remain stable, as the housing market continues to be in need of new inventory.