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Energy Prices Rise Again in August – Eye On Housing

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Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month. Prices for services also rose, up 1.5% over the month and 7.8% higher over the year.

The Producer Price Index for final demand was up 0.4% in August, after rising 0.1% in July. Compared to a year ago, final demand prices were up 5.4%. The index for final demand services rose 0.1% in August, while the index for final demand goods rose 1.1%.

The price index for inputs to new residential construction was up 1.1% in August and was up 7.8% from last year. The price of goods used in new residential construction (including energy) was up 0.9% over the month and up 7.8% from last year, while the price of services was up 1.5% over the month and up 7.8% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 0.9% in August after rising 0.4% in July.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 6.6% in August and were 46.2% higher than a year ago. Building material prices were up 0.2% in August and up 5.1% compared to one year ago.

Price increases for energy products outpaced other materials. No. 2 diesel fuel prices were up 17.7% over the month and 77.7% higher than a year ago. Unleaded regular gasoline prices rose 3.3% over the month and were 47.0% higher than a year ago. Outside of energy products, nonferrous wire and cable prices rose 2.4% over the month and were up 19.6% from a year ago. Softwood veneer and plywood prices rose 1.7% and were up 12.5% from a year ago. Some prices for products did fall over the month, as softwood lumber prices fell 2.5% but were still 13.0% higher than a year ago.

Input Services

Prices for service inputs to residential construction rose 1.5% in August. On a year-over-year basis, service input prices were up 7.8%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 9.0% from a year ago. The price of transportation and warehousing services has risen 14.4% over the year, while prices for other services were up 2.6% over the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Building Material Prices Show Growth In July – Eye On Housing

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Residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year ago. Energy prices fell again in July but remained significantly higher than a year ago. Meanwhile, prices for services were down 0.3% over the month but were 6.2% higher than a year ago.

The Producer Price Index for final demand was unchanged in July, after falling 0.1% in June. Compared to a year ago, final demand prices were up 4.7%.  The index for final demand services rose 0.2% in July, while the index for final demand goods fell 0.7% over the month.

The price index for inputs to new residential construction fell 0.1% in July and was up 6.5% from last year. The price of goods used in new residential construction (including energy) was up 0.1% over the month and up 6.7% from last year, while the price of services was down 0.3% over the month and up 6.2% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 0.1% in July after falling 0.7% in June.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices fell 2.4% in July but were 33.1% higher than a year ago. Building material prices were up 0.4% in July and up 5.0% compared to one year ago. The year-over-year percentage increase in building materials was the highest since December 2022.

Among building materials, softwood lumber prices rose significantly in July, as they were up 7.4% over the month. Softwood lumber prices were up 17.3% from one year ago. Ready-mix concrete prices were down 0.4% over the month and have only risen 2.2% from a year ago.

Input Services

Prices for service inputs to residential construction fell 0.3% in July. On a year-over-year basis, service input prices were up 6.2%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 7.0% from a year ago. The price of transportation and warehousing services rose 10.9%, while prices for other services were up 2.5% over the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Building Material Prices Continue to Rise Despite Energy Price Declines – Eye On Housing

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Residential building material prices, excluding energy, rose 0.5% in June and were up 4.6% from a year ago. Lower energy prices were apparent in June, as energy input prices fell 10.3% over the month. Meanwhile, prices for services rose 5.2% over the year, and were up 1.0% from the previous month.

The Producer Price Index for final demand declined 0.3% in June, after rising 0.6% in May. Compared to a year ago, final demand prices were up 5.5%. The index for final demand services rose 0.3% in June, while the index for final demand goods fell 1.4% over the month.

The price index for inputs to new residential construction fell 0.1% in June and was up 6.2% from last year. The price of goods used in new residential construction (including energy) was down 0.8% over the month and up 6.9% from last year, while the price of services was up 1.0% over the month and up 5.2% from last year. The decline in the overall residential input price index was largely driven by lower goods prices, particularly energy-related inputs.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was down 0.8% in June, the first monthly decline since December of last year.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index. Energy input prices fell 10.3% in June but were 40.9% higher than a year ago. Building material prices were up 0.5% in June and up 4.6% compared to one year ago.

Among input goods, energy costs continue to show the largest price increase from a year ago. Diesel fuel costs were up 65.7% from a year ago in June. Outside of energy products, roofing asphalt product prices were up 9.2% from a year ago and rose 4.0% in June alone. Softwood lumber prices showed upward movement in June, with prices 7.0% higher than a year ago. Ready-mix concrete prices were up 1.9% from a year ago, while gypsum building material prices were down 1.1% from a year ago.

Input Services

Prices for service inputs to residential construction rose 1.0% in June. On a year-over-year basis, service input prices were up 5.2%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 4.7% from a year ago. The price of transportation and warehousing services rose 16.0%, while prices for other services were up 2.0% over the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Inflation Cooled in June as Gas Prices Eased – Eye On Housing

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Inflation slowed to 3.5% in June from a three-year high last month, driven by a mid-June ceasefire agreement that stabilized oil markets and lowered energy prices. The decline in energy prices offset increases in shelter and food, resulting in a monthly decrease in inflation for the first time since April 2020. However, the relief could be short-lived as the ceasefire collapsed in early July has pushed oil prices up by 12% and renewed inflation concerns. 

On a non-seasonally adjusted basis, the Consumer Price Index (CPI) rose by 3.5% in June from a year ago, following a 4.2% increase last month, according to the BLS latest report. The “core” CPI, excluding the volatile food and energy components, increased by 2.6% over the past twelve months, following a 2.9% increase in May. The housing shelter index, which makes up a large portion of “core” CPI, rose 3.3% over the year, following a 3.4% increase last month. Meanwhile, the component index for food rose by 3.0%, and the energy component index increased by 15.7%.

On a monthly basis, the CPI fell by 0.4% in June (seasonally adjusted), while the “core” CPI remained unchanged.

The price index for a broad set of energy sources decreased by 5.7% in June, with decreases in gasoline (-9.7%), fuel oil (-9.2%), and electricity (-1.0%), with a minor increase in natural gas (+0.5%). Meanwhile, both food at home and food away from home indexes rose by 0.2 in June.

Outside of energy, other top contributors that fell in June included indexes for motor vehicle insurance (-2.0%), communication (-1.5%), apparel (-0.6%), medical care (-0.1%) and used cars and trucks (-0.2%). Meanwhile, the index for recreation (+0.5%), household furnishings and operations (+0.2%), and personal care (+0.2%) were among the few major indexes that increased over the month.

The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.1% in June, the smallest monthly increase since January 2021. The index for owners’ equivalent rent (OER) rose by 0.2%, while the index for rent of primary residence (RPR) increased by 0.1% over the month.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than core inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster than core inflation, the real rent index rises and vice versa. The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). In June, the Real Rent Index rose by 0.1%.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Residential Building Material Prices Rise at Highest Rate In Over Three Years – Eye On

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Wholesale prices of goods used in residential construction rose in May as energy prices continued to climb. In May, residential building material prices, excluding energy, rose at their highest yearly rate since January 2023, as prices were up 4.4% from a year ago and up 0.7% over the month. Meanwhile, prices for services rose 4.7% over the year, but were unchanged from the previous month.

The Producer Price Index for final demand increased 1.1% in May, after rising 1.1% in April. Compared to a year ago, final demand prices were up 6.5%. The index for final demand services rose 0.3% in May, while the index for final demand goods rose 2.8% over the month.

The price index for inputs to new residential construction rose 1.3% in May and was up 6.9% from last year. The price of goods used in new residential construction (including energy) was up 2.1% over the month and up 8.3% from last year, while the price of services was unchanged over the month and up 4.7% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 2.1% in May. This monthly increase was the largest since it rose 3.3% back in March of 2022.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 17.2% in May and were 62.8% higher than a year ago. Building material prices were up 0.7% in May and up 4.4% compared to one year ago.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 105.9% higher than a year ago. Metal molding and trim prices remained higher, with prices up 42.9% from a year ago. Softwood lumber prices were up 5.6% from a year ago in May while ready-mix concrete prices were up 1.7% from a year ago. Gypsum building materials prices were down 1.1% from a year ago.

Input Services

Prices for service inputs to residential construction reported no price change in May. On a year-over-year basis, service input prices were up 4.7%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 3.8% from a year ago. The price of transportation and warehousing services rose 17.3%, while prices for other services were up 1.7% over the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Rent Prices Continue to Rise, While Absorption Remains Low – Eye On Housing

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The percentage of new apartment units that were absorbed within three months after completion was up one percentage point in the fourth quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA). The survey covers new units in multifamily residential buildings with five or more units. The number of new multifamily units completed was 77,380 in the fourth quarter, the lowest quarterly completions since the second quarter of 2022 (76,630).

Apartments

The percentage of apartments absorbed within three months after completion was 49% for those completed in the fourth quarter of 2025. This was the sixth consecutive quarter for which new apartments were absorbed at a rate below 50%. The median asking rent for apartments completed in the fourth quarter was $2,034, up 4.5% from $1,946 last year. This also marks the first quarter where the median asking rent topped $2,000.

Along with the three-month absorption rate and completions, SOMA also reports absorption rates at six, nine, and twelve months after completion. For apartments completed six months ago (97,210 units), 68% have been absorbed into the market. For apartments completed (93,140 units) nine months ago, 80% have been absorbed. For those completed twelve months ago (92,760 units), 90% have been absorbed into the multifamily market.

Condominiums and Cooperative Units

The three-month absorption rate for new condominiums and cooperative units rose to 70%. Total completions of new condominiums and cooperative units, according to SOMA, was 4,831 in the fourth quarter of 2025.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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New Home vs. Existing Home Prices in Q1 2026 – Eye On Housing

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In the first quarter of 2026, the median price for a new single-family home was $403,200, which was $1,400 lower than the median price of an existing home, which stood at $404,600. This marks the fourth consecutive quarter for which existing home prices have exceeded new homes prices, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA)

Typically, new homes carry a price premium over existing homes. However, beginning in the second quarter of 2024, this relationship reversed, with existing home prices exceeding new home prices in six of the past eight quarters.

Both new and existing homes saw dramatic increases in prices post-pandemic due to higher construction costs and limited supply. While overall home prices remain elevated compared to historical norms, new homes prices have moderated due to tactical builder business decisions, whereas existing homes prices continue to increase because of lean supply and in some markets a lack of price discovery for existing homeowners.

The median price for a new single-family home sold in the first quarter of 2026 decreased by 4.7% from the previous year. New home price annual growth has been trending downwards since the second quarter of 2023.

Although existing home prices have continued to experience year-over-year increases for past 11 quarters, annual growth has slowed from a high of 4.9% two years ago to just 0.6% in the first quarter of 2026.

There are several factors as to why new and existing homes are selling at similar price points. Tight inventory continues to push up prices for existing homes, as many homeowners who secured low mortgage rates during the pandemic are hesitant to sell due to current high interest rates.

Meanwhile, new home pricing is more volatile – prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes, and offering incentives. Additionally, there has been a shift in home building toward the South, associated with less expensive homes because of policy effects. This has occurred in an environment in which construction costs continue to rise, which is the fundamental driver of home prices.

The least expensive region for new homes in the fourth quarter was the South, with a median price of $361,800. The Midwest followed closely behind at $375,900. For existing homes, the Midwest was the most affordable region at $309,100, followed by the South at $362,500.

New homes were most expensive in the Northeast with a median price of $815,600, while the West sold at $551,500. For existing homes, the West led as the most expensive region at $607,000, followed by Northeast at $506,400.

The new home price premium was most pronounced in the Northeast, where new homes sold for $309,200 more than existing homes. Additionally, in the Midwest homes new homes sold for $66,800 more than existing homes. The West and South followed the national trend, with existing homes priced $55,500 more than new homes in the West and $700 more in the South.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Residential Construction Input Prices Move Higher In April – Eye On Housing

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Prices rose across a host of goods and services used in residential construction. Rising energy prices were the primary driver, but transportation service prices also rose at their fastest pace since 2022. Meanwhile, building material prices, excluding energy, rose at their highest yearly rate in three years, up 3.7% from a year ago.

The Producer Price Index for final demand increased 1.4% in April, after rising 0.7% in March. Compared to a year ago, final demand prices were up 6.0%. The index for final demand services rose 1.2% in April, while the index for final demand goods rose 2.0% over the month.

The price index for inputs to new residential construction rose 1.3% in April and was up 5.9% from last year. The price of goods used in new residential construction was up 1.2% over the month and up 6.1% from last year, while the price of services was up 1.3% over the month and up 3.7% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 1.2% in April.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 13.8% in April and were 39.4% higher than a year ago. Building material prices were up 0.1% in April and up 3.7% compared to one year ago. Building material prices have continued to grow above 3.0% since July of last year.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 74.4% higher than a year ago. Asphalt prices rose 18.0% higher than April 2025 after declining in March. Softwood lumber prices were up 1.1% in April after declining on a yearly basis for several months. Fewer materials showed yearly price declines than in March. Particleboard and fiberboard prices were down 12.0%, while softwood veneer/plywood prices were down 1.7%.

Input Services

Prices for service inputs to residential construction reported an increase of 1.3% in April. On a year-over-year basis, service input prices were up 5.6%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 5.6% from a year ago. The price of transportation and warehousing services rose 15.3%, while prices for other services were up 1.6% over the year. Long-distance motor carrying service prices rose 10.4% in April and were 18.3% higher than a year ago, while local motor carrying service prices rose 1.4% in April and were 6.3% higher than a year ago. These are the two transportation services that are represented as inputs in the residential construction price index.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Higher Energy Prices Increase Residential Construction Costs – Eye On Housing

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Energy input prices increased in March at their fastest pace since June of 2020 as the conflict in Iran shocked critical global supply chains. Building material prices, excluding energy, rose for the eleventh straight month. Price growth for trade services slowed while transportation and warehousing price growth accelerated.  

The Producer Price Index for final demand increased 0.5% in March, after rising 0.5% in February. The index for final demand services was unchanged in March, while the index for final demand goods rose 1.6% over the month.

The price index for inputs to new residential construction rose 1.2% in March and was up 3.8% from last year. The price of goods used in new residential construction was up 1.8% over the month and up 4.3% from last year, while the price of services was up 0.3% over the month and up 3.1% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 1.8% in March.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 21.4% in March and were 20.8% higher than one year ago. The monthly increase in March was the largest since prices rose 30.6% in June 2020. Building material prices were up 0.4% in March and up 3.1% compared to one year ago.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 51.2% higher than a year ago. Metal molding and trim continued to show high price increases, as there were up 45.5% from last year. On the opposite end, the largest yearly declines in prices were for particleboard and fiberboard with prices down 15.7%. Notably, asphalt reported a price decline of 12.3% in March. For key inputs, ready-mix concrete prices were 0.5% higher than a year ago while softwood lumber prices were 7.8% lower than a year ago.

Input Services

Prices for service inputs to residential construction reported an increase of 0.3% in March. On a year-over-year basis, service input prices were up 3.1%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 3.3% from a year ago. The price of transportation and warehousing services rose 6.2%, while prices for other services were up 1.5% over the year.

Expanded Inputs to New Construction Data

Within the PPI that BLS publishes, new experimental data was recently published regarding inputs to new construction. The data expands existing inputs to industry indexes by incorporating import prices with prices for domestically produced goods and services. With this additional data, users can track how industry input costs are changing among domestically produced products and imported products. This data focuses on new construction, but the complete dataset includes indices across numerous industries that can be found here on BLS website.

New construction input prices are primarily influenced by domestically produced goods and services, with domestic products accounting for 90% of the weight of the industry index for new construction. Imported goods make up the remaining 10% of the index.

The latest available data, for January 2026, showed that domestically produced goods continue to show price growth compared to imported goods used in new construction. On a year-over-year basis, the index for domestic goods increased 2.6%, while prices for imported goods have fallen 2.7%.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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House Prices Decline in Local Markets Despite National Growth – Eye On Housing

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Nationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.

Since the onset of the COVID-19 pandemic, house prices have surged nationwide. Between the first quarter of 2020 and the third quarter of 2025, national house prices climbed 54.9%. Local markets saw broad gains as well, with cumulative appreciation ranging from 18.3% to 88.4%, and 159 metro areas reached their highest recorded house prices in the third quarter of 2025.

Yet despite these increases, more than half of metro areas have now experienced at least some decline from their recent price peak. These declines range from a slight 0.1% dip to a more substantial 12.7% decline, with most of the downward trends beginning in last 2024 or early 2025.

House price declines have been most widespread in the West and South, regions that saw some of the fastest appreciation during the pandemic boom.  Several markets stand out for their significant corrections:

Punta Gorda, FL has experienced the sharpest decline, with prices falling 12.7% since its peak in the fourth quarter of 2022.

Austin–Round Rock–San Marcos, TX, one of the nation’s hottest markets during the pandemic, has seen prices drop 11.3% since reaching a peak in the second quarter of 2022.

Victoria, TX reached its peak more recently in the fourth quarter of 2024 and has since seen prices decline 11.0% over the past three quarters.

In contrast, many metro areas in the Midwest and Northeast have avoided significant price declines. These regions continue to see slower but steady price growth, supported by persistent inventory shortages and solid demand. Their more moderate appreciation during the pandemic has also helped limit the risk of sharp price corrections. Here are some examples (listed in no particular order):

York–Hanover, PA recorded a 6.0% year-over-year increase in house prices in the third quarter of 2025, reflecting stable demand and limited housing supply.

Worcester, MA continues to experience price growth, slowing from the rapid 18.0% growth in the third quarter of 2021 to a still-solid 4.4% year-over-year gain in the third quarter of 2025.

Wausau, WI experienced a robust 9.5% year-over-year increase in home prices, standing out as one of the strongest and most resilient housing markets in the region.

Milwaukee-Waukesha, WI continue to see rising house prices, with growth easing from a peak of 16.7% growth in the second quarter of 2022 to a more sustainable 5.6% year-over-year increase in the third quarter of 2025.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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