Construction materials prices rose 1.7% in April, month over month, according to recently released US Bureau of Labor Statistics producer price index data.
Since April 2025, prices have increased by 7%. By sector, inputs for multi-family construction have increased by 1.5% since March, with an increase of 6.1% year-on-year. Non-residential materials prices rose slightly, rising 1.8% monthly and 7.4% annually.
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Input prices have increased more in the first four months of 2026 (6.2%) than in the previous three years (4.8%).
“Construction input prices rose again in April,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a news release. “Input prices have risen more in the first four months of 2026 (6.2%) than in the previous three years (4.8%).
Spikes in energy prices, due to the ongoing conflict in Iran, account for much of the overall increase. Crude oil prices soared in April, up 11.3% from March and up 61.8% from April 2025. Unprocessed energy materials rose 9.2% this month and 48.9% year-on-year.
The lingering effects of tariffs are also evident. Affected products, such as steel products and hot-rolled steel bars, plates and structural shapes, continue to experience price increases, up 3.8% and 4.1% in April, respectively, on a monthly basis.
“Construction input costs continue to rise much faster than contractor bid prices, particularly for energy and metal-related materials,” Macrina Wilkins, director of market information for the Associated General Contractors of America, said in a statement.
“This gap makes it increasingly difficult for contractors to accurately price projects and increases the risk of delays, redesigns and deferred construction activity if cost volatility persists,” Wilkins added.
Basu expressed a similar sentiment. “In addition to the direct impact of this escalating re-emerging materials prices, overheated inflation data coupled with upbeat labor market indicators suggest the Federal Reserve is unlikely to cut rates this year,” he said. “While contractors remain busy, according to the ABC’s Construction Backlog Indicator, these cost pressures are likely to weigh on construction activity over the coming months.”
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