TL;DR
Get cleaning gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
Building material prices rose 0.4% in September and were 5.5% higher than a year earlier, their highest year-over-year level since December 2022, according to an analysis by the National Association of Home Builders based on Bureau of Labor Statistics data. Total prices for goods and services used in new residential construction increased 10.3% year over year, with energy and service costs recording especially large gains.
Building material prices rose 0.4% in September and were 5.5% higher than a year earlier, the largest year-over-year increase since December 2022, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders. The broader price index for goods and services used in new residential construction rose 10.3% year over year, a measure of cost pressure for builders and, potentially, homebuyers.
The September increase in building materials followed a larger rise in the broader goods category. Prices for goods used in new residential construction, including energy, climbed 1.8% for the month, after rising 0.9% in August, and were 9.7% above their year-earlier level. The combined index for construction input goods and services increased 2.0% in September.
Energy costs were a major source of the monthly movement. Energy input prices rose 13.0% in September and stood 64.1% above the level a year earlier. No. 2 diesel fuel prices increased 24.2% during the month and were 115.2% higher year over year; regular unleaded gasoline prices rose 13.0% monthly and 66.1% annually.
Several non-energy materials also became more expensive. Particleboard and fiberboard prices rose 3.5% in September and 7.8% year over year. Softwood veneer and plywood prices increased 2.7% for the month and were 15.9% above their year-earlier level. Mineral wool rose 2.8% monthly, though its annual increase was 1.6%.
Rising Costs Reach Construction Budgets
The figures point to rising costs across several parts of the residential construction supply chain, rather than an increase limited to a single building product. Builders may face higher expenses for materials, fuel, shipping and services, though the data do not specify how much of those increases companies will absorb or pass on to customers.
For people planning a new home, increased input costs can add pressure to project budgets and complicate pricing. The September figures alone do not establish that home prices or construction bids rose by the same percentages: those outcomes also depend on labor, land, financing, local demand and the timing of purchases. Still, the 10.3% annual rise in total input prices signals a substantial cost increase for the goods and services included in the index.
The steep energy readings matter because fuel is used directly in equipment and transportation, while higher transportation and warehousing service prices can affect the cost of moving materials. The source data report price changes, not the contribution each category made to a particular builder’s expenses.
As an affiliate, we earn on qualifying purchases.
A Four-Year Comparison Point
The September building-material figure is a year-over-year comparison: prices were 5.5% above September 2025 levels. The report identifies it as the highest annual increase since December 2022, when building material prices were up 8.0% from a year earlier. That comparison places the latest reading at its highest point in nearly four years, but it does not mean prices themselves have returned to a prior peak or that every material has risen at the same rate.
Service inputs also rose sharply. Their prices increased 2.2% in September and 11.3% year over year, the highest annual rate since April 2022, when the increase was 17.7%. Within services, trade services were up 14.0% from a year earlier, transportation and warehousing services rose 19.3%, and other services increased 3.1%.
Hardware Retailing reported the figures on October 16, 2026, citing the Bureau of Labor Statistics and an analysis by the National Association of Home Builders. The measures concern input prices for new residential construction; they are not a direct index of retail prices paid by homeowners for renovation materials.
As an affiliate, we earn on qualifying purchases.
Pass-Through to Home Prices Unknown
The reported index does not show how construction companies will respond to higher input costs, or how much they will pass along through bids and home prices. It also does not quantify the effect on any one project, region or building firm. The figures describe national price changes across specified input categories, which can differ from actual purchase costs faced by individual businesses.
The source provides September readings and selected comparisons with August and the previous year, but does not establish whether the increases will persist in coming months. It also does not explain the causes of the sharp energy and service increases. Those questions require additional data and future reports; they should not be inferred from the price changes alone.
As an affiliate, we earn on qualifying purchases.
Upcoming Data Will Show Direction
Future Bureau of Labor Statistics releases will indicate whether input-price increases continue, ease or reverse. Builders and suppliers may also track fuel, transportation, trade-service and material costs as they prepare estimates and purchasing plans. The September report provides a snapshot, not a forecast, so the next readings will be needed to show whether the elevated annual rates are sustained.
Readers comparing later figures should distinguish monthly changes from year-over-year changes and check which categories are included. A movement in the total construction-input index may reflect goods, services or both; the September data show increases in each, but do not predict their next direction.
As an affiliate, we earn on qualifying purchases.
Key Questions
How much did building material prices rise in September?
They rose 0.4% from August and were 5.5% higher than a year earlier, according to the data reported by Hardware Retailing.
Why is the September increase described as a near four-year high?
The 5.5% year-over-year increase was the highest since December 2022, when the annual increase was 8.0%. The comparison refers to the annual rate of change, not a record price level.
What happened to overall residential construction input costs?
The combined index for goods and services used in new residential construction rose 2.0% in September and was 10.3% higher than a year earlier.
Which costs increased most sharply?
Energy input prices rose 13.0% in September and 64.1% year over year. No. 2 diesel fuel prices climbed 24.2% for the month and were 115.2% above their year-earlier level.
Do these figures mean new homes will cost 10.3% more?
No. The 10.3% figure measures prices for goods and services used as inputs to new residential construction. It does not measure the change in home prices, and the report does not say how much of the cost increase builders will pass on to buyers.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
