The Rising Cost of Building Materials

Lumber, Concrete and Gypsum Prices Increase.

Photo Courtesy of Adobe Stock.

As building material prices and demand for houses increased throughout the year, total construction spending on residential housing rose to almost $667 billion.


These building material prices rose 5.4% in 2020, led by a jump in lumber costs due to an interruption in production at the start of the pandemic, which limited supply. High housing demand and weakening of the U.S. dollar also contributed to the increase.

The charts below show the trend in building material prices since 2015.

Lumber

Lumber prices reached historic peaks this year, but those prices have been volatile. This year’s price index has been roughly four times as volatile as it was during the recessionary years of 2008 and 2009.


Softwood lumber prices rose by 12.5% in December following a 23.9% decline over the prior two months.

Ready-Mix Concrete

Ready-mix concrete prices rose by 0.7% in December, after a drop of 1.1% in November.

Gypsum Products

Prices for gypsum products, such as drywall and ceiling tiles, bounced around during the year until surging by 4.8% in November. They ended the year about 0.9% higher than December 2019.


Source: 2021 CoStar News.

36 views

Recent Posts

See All

Research Brief: Employment

January’s Job Figures Reflect Diverging Performance Across Economic Sectors Beleaguered by infections, hiring gets off to slow start in 2021. Employers expanded payrolls by a modest 49,000 jobs last m

CONNECT WITH US

  • Facebook - White Circle
  • LinkedIn - White Circle
  • Twitter - White Circle

201 North Franklin Street

Suite 1100

Tampa, FL 33602

CONTACT US

© 2020 Medefind Retail. All Rights Reserved