Construction material prices decreased 1.1% in June and are up 7.6% on a year-over-year basis, according to Associated Builders and Contractors. Prices in June were 53.1% higher than in February 2020.
Nonresidential construction material prices fell 1.1% in June and increased 7.4% compared with one year ago. Softwood lumber prices are down 0.6% for the month and up 6.2% year over year. Iron and steel prices are up 2.5% for the month and 14.2% year over year. Natural gas rose 16.6% in June and is down 16% year over year. Crude petroleum fell 12.1% for the month and is up 41.3% year over year.
“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” said ABC Chief Economist Anirban Basu. “Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15% rebound in oil prices, and tariff-affected commodities like iron, steel and copper continue to experience steep price increases.
“While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index,” Basu continued, “higher input costs will likely weigh on profitability during the second half of 2026.”
