Prices of materials used in residential construction have been flat or even declined in some cases, providing welcome relief to home builders. But overall, prices of building materials are still far above their pre-pandemic levels, and the impact of those elevated prices can be seen in unexpected places. Earlier this year, NAHB reported that building material price growth slowed dramatically in 2023, in line with slowing inflation in the broader economy. Prices still grew, though, and were still elevated from post-pandemic surges. “The only major building material to see price recovery is lumber,” said Jesse Wade. …For other build materials categories, prices are still far above their pre-pandemic levels.

• Gypsum: Prices decreased 2% over 2023, after increasing 44.6% over the two years ending December 2022.
• Ready-mix concrete: The average price of concrete increased 11.2% in 2023 and 10.3% in 2022.
• Steel mill products: Steel mill products annual average prices declined 16.1% in 2023 after increasing 8.7% in 2022.