Cost of Building Materials is on the Rise

Prices of softwood lumber, gypsum, ready-mix concrete and OSB all rose for the second consecutive month, according to the latest Producer Price Index (PPI) released on April 13 by the Bureau of Labor Statistics. Softwood lumber and OSB experienced the largest price increases.

The price of softwood lumber increased 2.3% in March after rising 4.8% in February. Softwood lumber prices have increased 7.2% over the first three months of 2017 and are up 12.9% since March 2016. These hikes have been largely, if not completely, due to the ongoing softwood lumber trade dispute between the U.S. and Canada.

The prices of many softwood products have jumped by more than 25% since the beginning of this year, and the Random Lengths Framing Lumber Composite Index (below) has risen 16% during the same period.

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