The US Bureau of Labor Statistics released its latest Producer price index (PPI) report, which found that the price of goods used in residential construction, less energy, jumped 1.4% in March. The increase comes after the cost of building materials rose 2.2% in February and 4.1% in January, an increase of 8% since the start of the year. Year over year, the cost of building materials has increased by 20.4% and 33% since the start of the pandemic in March 2020.
Services inputs into residential construction saw even bigger jumps, up 3.2% in March, 5.1% in February and 6.2% in January, for a total increase of 15.2%. % in 2022. The price index for services inputs in residential construction is increasing by 18.5% per year. -over one year and 39% since the start of the pandemic.
The Houzz The US Renovation Barometer, which tracks home improvement market expectations among construction and design professionals, found that construction professionals are also concerned about rising gas prices and the impact that it has and will continue to have on their activities. Gasoline prices will also be a determining factor for professionals deciding whether or not to undertake a new project, with delays of three months for construction professionals and two months for architecture and construction professionals. design.
“While business activity and confidence in demand for construction and design services was the strongest we’ve seen in the past four quarters, industry professionals are cautious about expected performance in the second quarter.” , says Marine Sargsyan, economist at Houzz. “The pros anticipate some impact on project requests due to inflation, supply chain delays and rising material costs, such as wood, aluminum and even gasoline. However, long backlogs persist in the second quarter, signaling continued home renovation and design activity.