Construction material prices rose 2.2% in March and are up 4.8% on a year-over-year basis, according to Associated Builders and Contractors. Prices in March were 48.4% higher than in February 2020.
Nonresidential construction material prices rose 2.3% in March and increased 5.4% compared with one year ago. Softwood lumber prices are down 0.9% for the month and 7% year over year. Iron and steel prices are up 1.6% for the month and 10.8% year over year. Natural gas fell 51.7% in March and is down 8.6% year over year. Crude petroleum rose 20.2% for the month and is up 12.3% year over year.
“Construction materials prices surged in March and are now up 4.8% year over year, the largest annual increase since January 2023,” said ABC Chief Economist Anirban Basu. “This monthly increase is due to higher oil prices, a direct result of conflict in Iran, and it remains to be seen how that seismic geopolitical event will affect other input prices in the months to come.
“The rapid increase in diesel prices since late February, for instance, will raise shipping costs, putting upward pressure on virtually every construction material. Contractors remained confident that their profit margins would continue to grow, according to the March reading of the ABC Construction Confidence Index, and it will be interesting to see if that optimism persists in the event of prolonged oil market strife.”
