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Building material prices were 5.5% higher in September than a year earlier, the fastest annual increase since December 2022, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. The broader index for goods and services used in new residential construction rose 10.3% year over year, with energy and service costs contributing to the increase.
Building material prices rose 5.5% over the year through September, the highest annual increase since December 2022, according to an analysis by the National Association of Home Builders (NAHB) of Bureau of Labor Statistics data. The increase was part of a broader rise in costs for new residential construction: the combined index for construction input goods and services was up 10.3% from a year earlier.
Material prices increased 0.4% in September, the NAHB analysis reported. That monthly rise was smaller than the increases in other parts of the construction input index. Prices for goods used in new residential construction, including energy, rose 1.8% for the month after a 0.9% increase in August, and were 9.7% higher than a year earlier.
Energy costs rose faster than other goods. Energy input prices climbed 13.0% in September and stood 64.1% above their level a year earlier. No. 2 diesel fuel prices rose 24.2% for the month and were 115.2% higher year over year. Regular unleaded gasoline prices increased 13.0% in September and 66.1% over the year.
Among materials outside energy, particleboard and fiberboard prices gained 3.5% during September and 7.8% year over year. Mineral wool rose 2.8% for the month and 1.6% from a year earlier, while softwood veneer and plywood increased 2.7% monthly and 15.9% annually. The figures show varied price movements across products rather than a uniform rise in every material category.
Higher Costs Reach Homebuilding
The September figures matter to home builders, contractors and material suppliers because construction input costs affect project budgets and the price calculations behind new residential development. The combined index for goods and services increased 2.0% in September and was 10.3% above the same month a year earlier, indicating that the cost pressure extended beyond building materials alone.
Energy and transportation-related increases can also affect the cost of moving materials and operating equipment, while service price growth adds expense across the construction process. The reported data do not establish how much of the increase will be passed on to buyers or renters. That depends on factors such as project contracts, material choices, labor costs and local market conditions, none of which are quantified in the report.
For retailers and suppliers, the figures provide a national snapshot of price changes that may inform purchasing and planning. They are not a direct measure of the cost of a particular home, nor do they show what an individual builder paid for materials. The reported rates describe changes in price indexes over specified periods.
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Goods and Services Both Rise
The figures were published in a report by Hardware Retailing on October 16, 2026, based on Bureau of Labor Statistics data and an NAHB analysis. The report distinguishes the price of goods used in new residential construction from service inputs, then combines them into a broader index. The goods measure includes energy, so its increase reflects both construction materials and energy products.
Service input prices rose 2.2% in September and were 11.3% above a year earlier. The report said that annual service increase was the highest since April 2022, when service prices rose 17.7% year over year. Within services, trade services were up 14.0% annually, transportation and warehousing services rose 19.3%, and other services increased 3.1%.
The distinction between monthly and yearly changes is important: a one-month increase describes movement from August to September, while the year-over-year figure compares September 2026 with September 2025. The report identifies 5.5% as the highest annual building-material increase since December 2022, when the rate was 8.0%; it does not say that September prices reached a record level.
Pass-Through Effects Remain Unknown
The reported index does not establish how price increases will affect individual construction projects, home prices or rents. It also does not identify the reasons for each category’s monthly movement or provide forecasts for the coming months. The data describe observed price changes, not the amount builders ultimately pay under specific contracts.
The source material does not provide a breakdown by region, project type or supplier, so national figures may not reflect local conditions. It also does not quantify how much of the overall increase came from any one category. The report’s comparison with December 2022 concerns the annual rate of building-material price inflation; it is not a claim that material prices themselves have returned to their 2022 levels.
Watch Upcoming Price Data
The September figures are a snapshot of price changes through that month. Subsequent BLS data will show whether the monthly increases in goods, energy and services continue, ease or reverse. Readers should distinguish new monthly movements from year-over-year comparisons, which can change as the comparison month changes.
Builders and suppliers may also monitor future NAHB analyses for updated construction input figures. The report does not announce a specific forecast or policy response, and it gives no date for a next analysis. For now, the confirmed development is the September increase and its comparison with the prior year and December 2022 annual inflation rate.
Key Questions
How much did building material prices rise in September?
Building material prices rose 0.4% from August to September 2026 and were 5.5% higher than in September 2025, according to the NAHB analysis.
Why is the September annual increase notable?
The 5.5% year-over-year increase was the highest annual rate since December 2022, when building material prices were up 8.0% from a year earlier.
Which costs rose fastest?
Energy input prices climbed 13.0% in September and were 64.1% higher year over year. No. 2 diesel fuel was up 115.2% from a year earlier, while transportation and warehousing service prices rose 19.3% over the year.
Did all construction materials increase in price?
No. The report lists increases for several products, including particleboard and fiberboard, mineral wool, and softwood veneer and plywood, but does not say that every material rose. The figures show different rates across categories.
Do these figures show how much home prices will rise?
No. The construction input index tracks price changes in goods and services used in new residential construction. It does not predict how much builders will pass on to home buyers or how local home prices will change.
Source: rss
