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Building material prices were 5.5% higher in September than a year earlier, the highest annual rate since December 2022, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. Total prices for goods and services used in new residential construction rose 10.3% year over year, with energy and service costs showing particularly sharp increases.
Building material prices rose 5.5% over the year through September, reaching their highest annual increase since December 2022, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. The broader price index for goods and services used in new residential construction climbed 10.3% year over year, with energy and service inputs adding substantially to cost pressures for the homebuilding industry.
Prices for building materials increased 0.4% in September from August and were 5.5% higher than in September 2025. The year-over-year rate was the highest since building material prices rose 8.0% in December 2022. That measure covers building materials, while the broader construction-input index also includes energy, transportation, trade and other services.
The price index for goods used in new residential construction, including energy, rose 1.8% in September after a 0.9% increase in August. It stood 9.7% above its level a year earlier. The combined index for construction goods and services increased 2.0% over the month and 10.3% over the year, according to the analysis.
Energy prices accounted for some of the largest increases. Energy inputs rose 13.0% in September and were 64.1% higher than a year earlier. No. 2 diesel fuel prices increased 24.2% during the month and 115.2% over the year; regular unleaded gasoline rose 13.0% in September and was up 66.1% annually. These figures describe price changes in the reported input categories, not the share of a builder’s total costs attributable to fuel.
Higher Costs Reach Homebuilding
The report points to mounting costs across several parts of residential construction, not just the materials installed in a home. Goods and services together were up 10.3% year over year, while service-input prices alone rose 11.3%. Builders and suppliers may face higher costs for materials, fuel, transportation, warehousing and trade services, although the report does not quantify how much any individual business will pay.
For people planning a home purchase or construction project, the figures matter because they track costs faced by the industry. They do not show that home prices or construction bids rose by the same percentages: builders’ final prices also depend on labor, land, financing, demand, contracts and other expenses. The data indicate input-cost pressure, but do not establish how much of it will be passed on to customers or when.
The sharp energy increases may also affect the cost of moving materials and operating equipment, but the source report does not estimate those effects separately. The distinction between a 5.5% increase in building materials and the larger rise in the wider construction-input index is important: each measures a different basket of costs.
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Materials and Services Diverge
The figures were published in a Hardware Retailing report on October 16, which attributed the underlying price data to the Bureau of Labor Statistics and the analysis to the National Association of Home Builders. The September readings cover prices paid for inputs used in new residential construction; they are not measures of completed-home prices or total project costs.
Within goods other than energy, increases varied by product. Particleboard and fiberboard prices rose 3.5% in September and were 7.8% higher than a year earlier. Softwood veneer and plywood rose 2.7% over the month and 15.9% over the year. Mineral wool increased 2.8% in September but was 1.6% above its year-earlier price.
Service costs also rose quickly. Service inputs increased 2.2% in September and 11.3% over the year, the highest annual rate since April 2022, when the increase was 17.7%. Trade services were up 14.0% year over year, transportation and warehousing services rose 19.3%, and other services increased 3.1%.
“Building material prices were up 0.4% in September and up 5.5% compared to one year ago, the highest level since 8.0% in December 2022.”
— Hardware Retailing report on September data
Pass-Through to Buyers Is Unknown
The reported indexes do not show whether builders have passed higher input costs on to buyers, absorbed them in lower margins, or adjusted project plans. They also do not provide a forecast for future prices or quantify how the September increases affect a typical home’s construction budget.
The source report gives percentage changes but does not include the underlying index values, a breakdown of each category’s contribution to the combined increase, or regional differences. It is also not clear from the report how long the energy and service increases will persist. The September data are a snapshot, and later readings may change the picture.
Future Price Readings Will Test Trend
The next monthly price releases will show whether September’s increases continue, moderate or reverse. Readers tracking the trend should distinguish changes in building materials from changes in the broader construction-input index, which includes energy and services. Further analysis from the NAHB or other industry sources may clarify how suppliers and builders are responding, but the report does not specify a date for such follow-up.
For now, the confirmed development is that September brought a 5.5% annual increase in building material prices and a 10.3% increase in the combined cost index for goods and services used in new residential construction. Whether those pressures translate into higher bids, home prices or delayed projects remains to be seen.
Key Questions
How much did building material prices rise in September?
They rose 0.4% from August and were 5.5% higher than in September 2025, according to the NAHB analysis of Bureau of Labor Statistics data.
Why is the 5.5% increase described as a four-year high?
The report says the annual increase was the highest since December 2022, when building material prices were up 8.0% year over year. It does not say September’s rate itself was 8.0%.
How much did total residential construction input costs rise?
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.
Did the report show that home prices rose 10.3%?
No. The 10.3% figure applies to the price index for construction inputs, including goods and services. The report does not measure completed-home prices or say how much of the input-cost increase was passed on to buyers.
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