Key Building Materials Prices Far Surpassed Inflation in 2016
The National Association of Home Builders, on its NAHB Now blog reports that softwood lumber, oriented strand board (OSB), ready-mix concrete and gypsum products all posted price changes in 2016 well above the 1.3% average for the Consumer Price Index, according to the latest Producer Price index released by the Bureau of Labor Statistics.
OSB prices surged 13.8% in 2016, while softwood lumber rose nearly 8.7%. In November, the cost of ready-mix concrete and gypsum products rose 3.5% and 5.0%, respectively, on a year-over-year basis.
In an ominous sign, the price of softwood lumber rose by 2.3% in December, which is the largest monthly increase since April 2016, NAHB said.