Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
Get in touch with us nowPrice change on annual basis of 32 different building materials in the U.S. 2014-2024
Building materials made of copper had some of the highest price growth rates in the U.S. in July 2024 in comparison to the previous year. The growth rate of the cost of many construction materials was much lower than a year earlier, in June 2023, when there were several products with a cost increase of over seven percent. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country.
Construction material prices in the United Kingdom
Similarly to the inflation trends in the U.S. at that time, the price growth rate of construction materials in the UK were generally lower 2023 than in 2022. Nevertheless, the cost of some construction materials in the UK still soared that year, with several of those items reaching price growth rates of over 10 or even of over 14 percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK.
Construction material shortages during the COVID-19 pandemic
During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.
