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Prices for goods and services used in new residential construction were 10.3% higher in September than a year earlier, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. Building material prices rose 5.5% year over year, their highest rate since December 2022, while energy and service costs also climbed sharply.
Prices for goods and services used in new residential construction rose 10.3% from September 2025, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. Building-material prices alone were up 5.5% year over year, the fastest annual pace since December 2022, adding to cost pressures for builders and potentially affecting project budgets and home prices.
The combined index for inputs to new residential construction increased 2.0% in September, after goods input prices rose 0.9% in August. The annual increase in the combined index reflects movement in both goods and services; the report does not attribute the full increase to building materials alone. Goods prices, including energy, rose 1.8% over the month and 9.7% from a year earlier.
Within goods, energy input prices jumped 13.0% in September and stood 64.1% above their level a year earlier. No. 2 diesel fuel prices rose 24.2% in the month and were 115.2% higher year over year. Unleaded regular gasoline prices increased 13.0% over the month and 66.1% over the year. These are input-price measures, not a direct measure of what every builder or consumer paid.
Building materials excluding the report’s broader goods and energy measures rose 0.4% in September and 5.5% over the year. Among listed products, particleboard and fiberboard prices increased 3.5% month over month and 7.8% year over year. Softwood veneer and plywood prices rose 2.7% in September and 15.9% from a year earlier. Mineral wool was up 2.8% over the month, but only 1.6% year over year.
Service inputs to residential construction rose 2.2% during September and were 11.3% higher than a year earlier, the highest annual increase since April 2022, when service prices rose 17.7%, the report said. Trade services were up 14.0% year over year; transportation and warehousing services rose 19.3%, while other services increased 3.1%.
Higher Costs Reach Building Budgets
The figures indicate that residential construction inputs became more expensive across several categories in September, not just through the cost of lumber or other materials. Energy, transportation and trade-service prices can affect the cost of moving supplies and carrying out work, while product-specific increases can alter estimates for particular projects. The data do not quantify how much of those costs builders have passed on to customers.
For builders, contractors and building-material retailers, the annual increases matter when setting bids, reviewing supplier terms and planning purchases. For prospective homebuyers, higher construction costs can be one pressure on affordability and the price of new homes. But this report measures input prices; it does not establish that home prices rose by the same amount, or that every project faced the same cost changes.
The distinction between monthly and annual rates also matters. The 2.0% monthly increase in the combined input index describes the change from August to September, while the 10.3% annual increase compares September with the same month a year earlier. Neither figure, by itself, predicts what costs will do in coming months.
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Annual Materials Inflation Reaches 2022 Level
The report’s headline comparison is the 5.5% annual increase in building-material prices, which Hardware Retailing said was the highest since an 8.0% year-over-year reading in December 2022. That comparison concerns the annual rate for building materials, not the broader combined index for construction goods and services.
Services followed a separate pattern. Their September annual increase of 11.3% was the highest since April 2022, when the rate reached 17.7%. The different measures capture distinct parts of the cost base: the report lists materials and energy among goods inputs, and trade, transportation and other services among service inputs.
Hardware Retailing published its account on October 16, 2026, drawing on BLS figures and an NAHB analysis. The source material does not provide the index’s numerical levels, seasonal-adjustment details or a longer breakdown of how the combined index is weighted. Those details limit what can be inferred from the reported percentage changes.
Pass-Through to Home Prices Unreported
The figures do not show how much of the higher input costs builders absorbed, passed on to buyers, or offset through other spending. They also do not measure the change in prices for completed homes, renovation work or individual construction projects. Actual costs vary by project, supplier, location and contract terms, none of which are detailed in the supplied report.
The source gives percentage changes but does not provide the index values, weighting methodology or a forecast. It also does not establish why each category rose or whether September’s increases will continue. The reported monthly and annual movements are observations, not evidence on their own of the future direction of prices.
Upcoming Data Will Test the Trend
The next monthly BLS data release and subsequent NAHB analysis will show whether the September increases persisted, eased or reversed. Readers tracking construction costs can compare the next report’s monthly and annual rates across the same categories, particularly building materials, energy and services.
Until those data are available, the September report establishes a recent increase but not a lasting trend. Builders and buyers seeking project-specific estimates will need current supplier quotes and contract details; the national input indexes do not determine the price of any one job.
Key Questions
How much did residential construction input prices rise in September?
The combined price index for goods and services used in new residential construction rose 2.0% from August and was 10.3% higher than a year earlier, according to the NAHB analysis of BLS data.
How much did building-material prices increase?
Building-material prices rose 0.4% in September and 5.5% year over year. Hardware Retailing reported that the annual rate was the highest since December 2022.
Which construction input costs rose most sharply?
Energy input prices increased 13.0% in September and 64.1% year over year. Among services, transportation and warehousing prices were up 19.3% from a year earlier.
Does the report mean new home prices rose 10.3%?
No. The 10.3% figure measures the annual change in prices for inputs to new residential construction, not the sale price of completed homes. The report does not quantify how much builders passed through to buyers.
Source: rss
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