Construction material prices dropped 0.6% in December 2025 and are up 2.8% on a year-over-year basis, according to Associated Builders and Contractors. Prices in December 2025 were 42.4% higher than in February 2020.
Nonresidential construction material prices fell 0.7% in December 2025 and increased 3.2% compared with one year ago. Softwood lumber prices are down 8.2% year over year and 0.5% for the month. Iron and steel prices are up 12.3% year over year and 5.2% for the month. Natural gas rose 34.8% in December 2025 and is up 8.8% year over year. Crude petroleum fell 2.7% for the month and is down 14.8% year over year.
“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” said ABC Chief Economist Anirban Basu. “This is especially true for materials most exposed to tariffs. Copper wire and cable prices, for instance, jumped an incredible 4.6% in December and are up more than 22% year over year, and prices for primary nonferrous metals are up nearly 62% over the past 12 months.
“Prices for commodities less exposed to tariffs, like asphalt or crushed stone, will likely remain tame in the coming months due to soft demand for construction services,” Basu continued. “While that may limit increases in overall materials prices, trade policy will continue to put upward pressure on certain materials. This has not significantly dimmed contractor optimism; 7 in 10 ABC members expect their profit margins to remain stable or grow over the next two quarters, according to ABC’s Construction Confidence Index.”
