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Building material prices were 5.5% higher in September than a year earlier, their highest annual rate since December 2022, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. The combined price index for goods and services used in new residential construction rose 10.3% year over year, with energy and construction-related services among the sharpest increases.
Building material prices rose 5.5% year over year in September, the highest annual increase since December 2022, according to a National Association of Home Builders analysis of Bureau of Labor Statistics data. The broader index of goods and services used in new residential construction was up 10.3% from September 2025, with steep increases in energy and service costs adding to pressure on construction budgets.
Prices for building materials increased 0.4% during September, following a broader rise in the prices of goods used in new residential construction. Those goods, including energy, were up 1.8% for the month, compared with a 0.9% increase in August. On a year-over-year basis, the goods measure rose 9.7%. The combined input index, which includes goods and services, increased 2.0% in September.
Energy prices drove the largest monthly movements in the report. Energy inputs rose 13.0% in September and were 64.1% above their level a year earlier. No. 2 diesel prices climbed 24.2% for the month and were up 115.2% year over year. Regular unleaded gasoline rose 13.0% in September and 66.1% over the year.
Among non-energy products, particleboard and fiberboard prices rose 3.5% month over month and were 7.8% higher than a year earlier. Mineral wool increased 2.8% for the month and 1.6% year over year. Softwood veneer and plywood prices rose 2.7% in September and were 15.9% above their year-earlier level.
Higher Inputs Pressure Construction Budgets
The figures point to cost pressure across several parts of residential construction, not only the materials purchased for a project. The combined input index rose 10.3% year over year, reflecting increases in goods and services. For builders, contractors and suppliers, higher input costs can affect project estimates and purchasing decisions; the data alone do not show whether or how businesses will pass those costs on to customers.
The sharp rise in energy inputs may also matter beyond fuel bills. Diesel and gasoline are used across construction and distribution, while the report separately records increased transportation and warehousing service prices. These figures show cost increases in those categories, but do not establish how much any specific building project’s total cost changed.
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September’s Goods and Services Measures
The report distinguishes between building material prices and a wider index of inputs used in new residential construction. The material figure was up 5.5% from a year earlier. The goods measure also includes energy and rose 9.7%, while services rose 11.3%. Combining goods and services produced the 10.3% annual increase in the overall input index.
Service prices increased 2.2% in September. Their annual increase of 11.3% was the highest since April 2022, when service prices rose 17.7% year over year. Within services, trade services were up 14.0% from a year earlier, transportation and warehousing services rose 19.3%, and other services increased 3.1%, according to the NAHB analysis of BLS data.
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Project-Level Effects Remain Unknown
The published figures describe price changes across input categories; they do not quantify the effect on the total cost of a particular home or building project. The report also does not state how much of the increases builders, suppliers or contractors may absorb or pass along. Those business responses and any resulting changes to project prices are not established by the September data.
The source material reports the September measures and selected annual comparisons, but does not provide a forecast for coming months or identify how long the increases may persist. The figures should not be read as a measure of consumer home prices, which are distinct from construction input costs.
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Watch Upcoming Price Releases
The September figures provide a snapshot of input costs; the next monthly price releases will show whether increases in materials, energy and services continue, ease or change direction. Builders and building-material businesses will also be watching fuel and freight costs, given the large September moves reported for diesel, gasoline and transportation services.
No forecast or specific next policy or industry action is given in the source report. The next clear data point will be a subsequent BLS release, alongside any updated analysis from NAHB that breaks down construction input prices.
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Key Questions
How much did building material prices rise in September?
Building material prices rose 0.4% in September and were 5.5% higher than a year earlier, according to the NAHB analysis of BLS data.
What does the 10.3% increase measure?
It is the year-over-year increase in the combined price index for goods and services used in new residential construction. It is broader than the building-materials figure alone.
Which costs rose most sharply?
Energy inputs rose 64.1% year over year. No. 2 diesel prices were up 115.2%, while transportation and warehousing services rose 19.3% over the year.
Does this mean home prices rose by 10.3%?
No. The 10.3% figure measures construction input prices, not the sale price of homes. The report does not say how the input increases affect any particular project or consumer price.
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