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Building material prices were 5.5% higher in September than a year earlier, their highest year-over-year rate 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 rose 10.3% year over year, with energy and service costs among the reported increases.
Building material prices rose 5.5% over the year in September, reaching their highest year-over-year rate since December 2022, according to an analysis by the National Association of Home Builders of Bureau of Labor Statistics data. The wider index for goods and services used in new residential construction was 10.3% higher than a year earlier, pointing to continued cost pressure across the sector.
Prices for building materials increased 0.4% from August to September. The annual rise of 5.5% marks the highest rate since building material prices were up 8.0% in December 2022, the report said. The figures describe price changes, not the total amount builders or homeowners paid, and the source does not estimate how much of the increase is passed on to buyers.
The combined index for inputs to new residential construction, including goods and services, rose 2.0% in September and stood 10.3% above its level a year earlier. Goods prices, including energy, increased 1.8% during the month, following a 0.9% rise in August, and were up 9.7% year over year. Service input prices rose 2.2% in September and 11.3% from a year earlier.
Energy recorded some of the sharpest movements. Energy input prices rose 13.0% in September and were 64.1% higher year over year. No. 2 diesel fuel increased 24.2% over the month and 115.2% over the year; regular unleaded gasoline rose 13.0% monthly and 66.1% annually. These are separate price measures in the report, not estimates of the share of construction costs attributable to fuel.
Higher Costs Across Homebuilding
The data matter to builders, suppliers and people planning construction because they show that cost increases extend beyond individual building products. The combined residential construction input index rose 10.3% year over year, while service inputs rose even faster, at 11.3%. That broader measure includes both goods and services used in new residential construction.
Higher input prices can put pressure on project budgets and complicate decisions about bids, purchasing and timing. The September figures alone do not establish how companies will respond, whether costs will be passed through to home buyers, or how much they will affect home prices, rents or construction activity. Those outcomes depend on factors not measured in this report, including contracts, margins, demand and the mix of materials used.
For hardware retailers and building-material suppliers, the mix of increases may also be relevant to procurement and delivery costs. Energy, transportation and warehousing costs can affect the movement of materials, while product prices vary across categories. The report provides national index movements; it does not describe the experience of a particular company, region or project.
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How September Compares
The comparison that puts the September increase near a four-year high refers specifically to the annual change in building material prices. The latest reported rate, 5.5% year over year, was below the 8.0% rate recorded in December 2022, but the highest since that month. It should not be read as a four-year high across every construction cost category: the report separately gives much larger annual increases for energy and services.
Service input prices were up 11.3% from a year earlier, the highest annual rate since April 2022, when the report says they increased 17.7%. Within services, trade services rose 14.0% year over year, transportation and warehousing services rose 19.3%, and other services increased 3.1%. These distinct categories help explain why the combined input index rose more than the building-material measure alone.
Selected non-energy materials also moved at different rates. Particleboard and fiberboard prices rose 3.5% in September and 7.8% year over year. Mineral wool rose 2.8% monthly and 1.6% annually, while softwood veneer and plywood increased 2.7% monthly and 15.9% year over year. The variation means the national headline rate does not describe every product equally.
Limits of the Price Data
The figures are national index changes and do not show the dollar impact on a specific building project, retailer or household. The source report does not give regional breakdowns, product-level weights, or an estimate of how much the September movements will affect construction budgets or home prices.
It is also not clear from the report how long the increases will persist. The data show changes between September and the stated comparison periods; they do not establish whether energy, service or material prices will rise or fall in subsequent months. The cited summary does not provide a forecast or explain what caused each category’s movement.
The report attributes the underlying data to the Bureau of Labor Statistics and describes the findings as an NAHB analysis. The detailed methodology and any revisions are not included in the provided material. The reported percentage changes should be read within their stated categories and time frames, rather than as a single measure of the cost of building a home.
Next Monthly Price Update
The next relevant development will be the release of subsequent Bureau of Labor Statistics price data and any follow-up analysis from the National Association of Home Builders. Those updates can show whether September’s monthly increases were sustained, reversed or concentrated in particular inputs. No forecast or specific next-release date is included in the source report.
Builders and suppliers can compare future monthly readings with September’s figures, including the 0.4% monthly rise in building materials, the 2.0% rise in the combined residential input index and the increases in energy and service inputs. Readers should distinguish those measures when tracking costs: the building-material index is not interchangeable with the broader goods-and-services index.
Key Questions
How much did building material prices rise in September?
Building material prices increased 0.4% from August and were 5.5% higher than in September 2025, according to the NAHB analysis of BLS data.
Why is the September rate described as near a four-year high?
The 5.5% year-over-year increase was the highest since December 2022, when the annual rate was 8.0%. The comparison is about building material prices, not every residential construction input.
What happened to the broader cost index?
The index for goods and services used in new residential construction rose 2.0% in September and was 10.3% higher than a year earlier. Goods, including energy, were up 9.7% year over year; services were up 11.3%.
Which reported costs rose most sharply?
Energy input prices rose 64.1% year over year. No. 2 diesel fuel was up 115.2% and regular unleaded gasoline 66.1% over the year, while transportation and warehousing services increased 19.3%.
Do these figures show how much home prices will increase?
No. The figures measure changes in construction input price indexes. They do not estimate how much builders will pass on to buyers or how the data will affect home prices, rents or project costs.
Source: rss
