Trends on construction materials and how they affect you
10-Year Construction Material Cost Trends (2014–2024)
Over the last decade, construction material prices have fluctuated significantly, influenced by global demand, supply chain disruptions, and inflationary pressures. These changes have far-reaching effects, from housing affordability to infrastructure costs. Let’s look at the trends, key drivers, and inflationary impacts.
Lumber
2014: $337 per 1,000 board feet
2021 Peak: $1,670 per 1,000 board feet
2024: $564 per 1,000 board feet
What’s Driving the Change?
Pandemic-driven demand, supply chain breakdowns, and natural disasters like wildfires sent prices skyrocketing in 2021. Prices have since stabilized but remain above pre-2014 levels.
Impact on Inflation
Lumber costs directly impact housing prices, making construction and renovation projects significantly more expensive.
Concrete
2014: $230 (Producer Price Index - PPI)
2024: $343 (PPI)
What’s Driving the Change?
Steady urbanization, infrastructure investment, and rising labor costs have contributed to consistent price increases.
Impact on Inflation
Concrete’s role in roads, buildings, and public works makes its rising cost a key driver of higher construction and maintenance expenses.
Steel
2014: $228 (PPI)
2021 Peak: $340 (PPI)
2024: $290 (PPI)
What’s Driving the Change?
Global demand, energy costs, tariffs, and supply chain challenges caused a sharp increase in prices during the pandemic, with partial stabilization since.
Impact on Inflation
Steel’s widespread use in appliances, vehicles, and construction amplifies its role in consumer price increases.
Fiberglass
2014: $0.70 per sq. ft.
2024: $1.10 per sq. ft.
What’s Driving the Change?
Higher raw material costs, increased energy prices, and growing demand for energy-efficient insulation are driving prices upward.
Impact on Inflation
The rising cost of fiberglass affects green building projects, which rely on insulation for energy savings.
Copper
2014: $3.11 per pound
2021 Peak: $4.76 per pound
2024: $3.50 per pound
What’s Driving the Change?
Renewable energy expansion, electrical grid upgrades, and mining constraints pushed prices up sharply during the pandemic.
Impact on Inflation
Copper price increases trickle into electronics, power infrastructure, and renewable energy projects, raising costs for consumers.
Aluminum
2014: $0.85 per pound
2022 Peak: $1.60 per pound
2024: $1.20 per pound
What’s Driving the Change?
Energy-intensive production, transportation bottlenecks, and growing demand in automotive and packaging have driven prices higher.
Impact on Inflation
Higher aluminum prices raise costs in industries like automotive, packaging, and construction, contributing to inflation.
Trends and Insights
The sharp price increases in lumber, steel, and copper during the pandemic highlight the fragility of global supply chains. Meanwhile, consistent growth in concrete and fiberglass prices reflects ongoing demand and inflationary pressures. Together, these rising costs trickle down to consumers, driving up the price of homes, vehicles, and public infrastructure projects.
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