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The price index for inputs to new residential construction rose 2.0% in September and was 10.3% higher than a year earlier, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders. Building material prices increased 5.5% year over year, their highest rate since December 2022, while energy and service costs recorded larger annual gains.
Prices for inputs to new residential construction rose 10.3% year over year in September, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders (NAHB). Building material prices were up 5.5% from a year earlier, the highest annual rate since December 2022, while energy and service costs climbed faster.
The combined index for goods and services used in new residential construction increased 2.0% in September compared with August. Goods prices, including energy, rose 1.8% for the month and stood 9.7% above September 2025. Service prices increased 2.2% monthly and were 11.3% higher year over year.
Energy recorded the sharpest increases among the reported goods. Input prices for energy rose 13.0% in September and were 64.1% above a year earlier. No. 2 diesel fuel prices jumped 24.2% over the month and were 115.2% higher year over year. Regular unleaded gasoline prices rose 13.0% monthly and 66.1% annually.
Among materials outside energy, particleboard and fiberboard prices increased 3.5% over the month and 7.8% from a year earlier. Softwood veneer and plywood prices rose 2.7% monthly and 15.9% annually. Mineral wool was up 2.8% in September but only 1.6% year over year. The report also said goods input prices had risen 0.9% in August before the larger September monthly increase.
Higher Costs Reach Homebuilding
The data point to rising costs across several parts of the residential construction supply chain, not just the materials purchased for a project. Energy, transportation and warehousing services posted especially large annual gains, while the overall index includes both goods and services used in new residential construction.
For builders, contractors and suppliers, higher input prices can affect purchasing budgets and project cost estimates. The figures do not show how much of the increase has been passed on to homebuyers, or whether particular firms have absorbed some costs. They do, however, indicate that the cost environment for new residential construction was more expensive in September than a year earlier.
The distinction between the combined index and the building-material figure matters: the 10.3% annual increase covers goods and services, while the separate materials measure rose 5.5%. The faster increases in services and energy help explain why the broad construction-input index climbed more than the materials figure alone.
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Materials and Services Diverge
The report, published by Hardware Retailing on October 16, 2026, summarizes Bureau of Labor Statistics figures and an NAHB analysis. It compares September prices with both August and the same month a year earlier. The measures concern inputs to new residential construction; they are not a direct measure of home sale prices or the total cost of an individual building project.
Building material prices were up 5.5% year over year, the highest rate since December 2022, when the annual increase was 8.0%. Service input prices were up 11.3% year over year, their highest increase since April 2022, when the rate was 17.7%. Within services, trade services rose 14.0%, transportation and warehousing services rose 19.3%, and other services increased 3.1% over the year.
The month-to-month and year-over-year figures describe different comparisons. A monthly rise records movement from August to September; the annual rate compares September 2026 with September 2025. Neither comparison by itself identifies the cause of the price changes.
What the Price Data Do Not Show
The figures do not specify how much of the September increase resulted from any single factor, such as fuel costs, supply conditions or demand. They also do not show whether the increases will continue in coming months or how individual builders and suppliers are responding.
The report provides index changes rather than dollar estimates for a typical home or project. It does not establish the effect on construction schedules, housing output, or prices paid by consumers. Those outcomes can vary by location, project type and purchasing arrangements, and are not quantified in the figures cited.
Upcoming Price Data to Watch
The next update to watch is the following month’s Bureau of Labor Statistics data on construction inputs. It can show whether September’s monthly increases persist, ease or reverse, and whether energy, building materials and service costs continue to move at different rates.
For now, the confirmed September picture is a 2.0% monthly rise in the combined index and a 10.3% annual increase. Further data will be needed to determine whether the September gains mark a sustained trend or a one-month acceleration.
Key Questions
How much did construction input prices rise in September?
The combined 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 figures cited in the report.
How much did building material prices increase?
Building material prices rose 0.4% in September and were 5.5% higher than in September 2025. The report describes that annual rate as the highest since December 2022.
Which costs rose fastest?
Energy input prices rose 13.0% in September and 64.1% year over year. Among services, transportation and warehousing prices were up 19.3% over the year; No. 2 diesel fuel prices rose 115.2% year over year.
Does the 10.3% increase mean home prices rose by the same amount?
No. The figure measures prices for goods and services used as inputs to new residential construction. It is not a measure of home sale prices and does not say how much of the cost increase builders passed on to buyers.
Source: rss
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