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The price index for goods and services used in new residential construction rose 2.0% in September and was 10.3% above its year-earlier level, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders. Building material prices rose 5.5% year over year, while service and energy costs recorded steeper increases.
Prices for goods and services used in new residential construction rose 2.0% in September and stood 10.3% higher than a year earlier, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders (NAHB). Building material prices increased 5.5% over the year, their highest annual rate since December 2022, while sharp energy and service cost increases contributed to the broader rise.
Input goods for new residential construction, including energy, rose 1.8% in September, following a 0.9% increase in August. Their prices were 9.7% above September 2025. Service input prices climbed 2.2% during the month and were up 11.3% year over year. Combining goods and services, the overall input price index rose 2.0% from August.
Energy recorded the steepest monthly increases. Energy input prices rose 13.0% in September and were 64.1% above the same month a year earlier. No. 2 diesel fuel prices jumped 24.2% over the month and were up 115.2% year over year. Regular unleaded gasoline rose 13.0% in September and was 66.1% higher than a year earlier.
Among materials outside energy, particleboard and fiberboard prices rose 3.5% in September and 7.8% over the year. Mineral wool increased 2.8% for the month but was up 1.6% year over year. Softwood veneer and plywood prices rose 2.7% monthly and 15.9% annually. The reported figures describe price changes across categories; they do not establish how much any particular builder or homeowner paid.
Higher Costs Reach Homebuilding
The figures show that cost pressures for residential construction are not limited to lumber or other familiar building materials. The combined index includes goods, energy and services, with service prices up 11.3% over the year and energy input prices up 64.1%. These categories can affect the costs involved in moving materials and carrying out construction work, as well as the price of physical products.
For builders, contractors and suppliers, broad increases can complicate budgeting and pricing, particularly when costs change quickly from one month to the next. For people planning a home purchase, renovation or new build, the data are a cost signal, not a direct forecast of a particular project’s final price. The report does not quantify how much of the increases will be passed on to customers, and individual project costs depend on materials, location, contracts and timing.
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Materials and Services Diverge
The reported measure covers inputs to new residential construction, rather than sale prices of new homes. It combines goods and services and includes energy in the goods component. That distinction matters: a 10.3% annual increase in the input index does not mean home prices rose by the same amount.
Within the measure, the annual increase for building materials was 5.5% in September, the highest since an 8.0% increase in December 2022, according to the NAHB analysis. Service input prices were up 11.3% year over year, their highest annual rate since April 2022, when they rose 17.7%. Trade services were up 14.0% over the year; transportation and warehousing services rose 19.3%, while other services increased 3.1%.
The mix of monthly and annual changes also offers different information. The monthly figures track movement from August to September, while the year-over-year figures compare September 2026 with September 2025. The sizable increases in selected energy products should not be confused with the smaller rise in building materials overall.
Pass-Through to Project Budgets
The index does not show how much builders have absorbed, passed on to customers or offset through contracts and purchasing decisions. It also does not estimate the effect on new-home prices, construction volumes or household renovation bills. The data report national price changes, so they do not specify how costs vary by region or project.
The supplied report gives September results and comparisons with August and the year-earlier period, but does not provide a forecast for coming months or explain the causes of each price movement. It is also unclear from these figures alone whether the sharp monthly energy increases will persist. The reported price changes should not be read as a prediction of future costs.
Watch the Next Price Readings
The next updates to watch are subsequent Bureau of Labor Statistics price data and NAHB analysis, which can show whether September’s monthly increases continue, ease or reverse. Changes in energy, materials and services may move at different rates, so the overall input index and its individual categories will both matter.
Until those readings are available, the September report provides a snapshot rather than a forecast. Builders and buyers seeking project-specific estimates will need current supplier quotes, labor and service pricing, and the terms of their own contracts; the national index cannot determine the final cost of an individual home.
Key Questions
How much did residential 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.
Which construction input category rose fastest?
Among the categories detailed in the report, energy input prices had the largest increases: 13.0% in September and 64.1% year over year. No. 2 diesel fuel rose 115.2% over the year.
What was the annual increase in building material prices?
Building material prices were 5.5% higher than a year earlier in September and rose 0.4% over the month. The annual rate was the highest since December 2022, according to the NAHB analysis.
Does the 10.3% increase mean new-home prices rose by 10.3%?
No. The figure measures prices for inputs to new residential construction, not the selling prices of completed homes. The report does not say how much of the cost increase was passed on to buyers.
Do the figures show what construction costs will be next?
No. September’s figures describe recorded price changes, not a forecast. Future data will show whether increases in energy, materials and services continue or change direction.
Source: rss
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