Construction material prices increased 1.7% in April and are up 7% on a year-over-year basis, according to Associated Builders and Contractors. Prices in April were 51.3% higher than in February 2020.
Nonresidential construction material prices rose 1.8% in April and increased 7.4% compared with one year ago. Softwood lumber prices are up 5.5% for the month and 0.9% year over year. Iron and steel prices are up 1.9% for the month and 10.4% year over year. Natural gas rose 4.9% in April and is up 27.3% year over year. Crude petroleum rose 11.3% for the month and is up 61.8% year over year.
“Construction input prices surged again in April,” said ABC Chief Economist Anirban Basu. “Input prices have now risen more during the first four months of 2026 (6.2%) than over the prior three years (4.8%). While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases.
“In addition to the direct impact of this reemerging materials price escalation, too-hot inflation data coupled with upbeat labor market indicators suggest that the Federal Reserve is unlikely to cut rates this year,” Basu continued. “While contractors remain busy, according to ABC’s Construction Backlog Indicator, these cost pressures will likely weigh on construction activity over the coming months.”
