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Prices for goods and services used in new residential construction were 10.3% higher in September than a year earlier, based on Bureau of Labor Statistics data analyzed by the National Association of Home Builders. Building material prices rose 5.5% year over year, their highest annual increase since December 2022, while energy and service costs climbed faster.
Prices for inputs to new residential construction were 10.3% higher in September than a year earlier, according to Bureau of Labor Statistics data analyzed by the National Association of Home Builders (NAHB). Building material prices rose 5.5% over the year, the strongest annual increase since December 2022, adding to cost pressure for builders and potentially affecting project budgets and housing prices.
The combined index for goods and services used in new residential construction rose 2.0% in September from August. Goods prices, including energy, increased 1.8% for the month, following a 0.9% rise in August, and stood 9.7% above their level a year earlier. Service input prices rose 2.2% in September and were 11.3% higher year over year.
Within goods, energy prices rose 13.0% in September and were 64.1% above September 2025. No. 2 diesel fuel rose 24.2% for the month and 115.2% over the year; regular unleaded gasoline increased 13.0% month to month and 66.1% year over year. Those increases exceeded the monthly change in building materials, which was 0.4%.
Price changes varied among non-energy products. Particleboard and fiberboard rose 3.5% in September and were 7.8% higher than a year earlier. Mineral wool increased 2.8% for the month but was up 1.6% over the year. Softwood veneer and plywood rose 2.7% month to month and 15.9% year over year, according to the figures summarized by NAHB.
Higher Costs Reach Building Budgets
The data point to continued cost pressure across the inputs used to build new homes. The 10.3% annual increase in the combined index includes both goods and services, rather than materials alone. That distinction matters: service costs rose more quickly than building materials over the year, while sharp increases in energy products contributed to the goods index.
For builders, suppliers and contractors, rising input prices can make estimates and project budgets harder to hold steady, particularly when costs change between planning and purchasing. Higher transportation and fuel expenses may also affect the cost of moving materials and operating equipment. The figures do not establish how much of any increase will be passed on to homebuyers, or whether it will change construction volumes; those outcomes depend on individual projects and market conditions.
The annual building-material increase is a narrower measure than the combined construction-input index. At 5.5% year over year, it was the highest since December 2022, when the annual rate was 8.0%. The September result signals renewed pressure in that category, but it does not mean all materials rose at the same pace or that every builder faces identical costs.
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Materials and Services Move Differently
The report, published by Hardware Retailing on October 16, 2026, summarizes Bureau of Labor Statistics data and an NAHB analysis. Its figures track prices for inputs to new residential construction. The goods measure includes energy, while the broader combined index also includes services such as trade, transportation and warehousing.
That scope helps explain why the headline combined increase differs from the building-material figure. In September, service input prices were up 11.3% year over year, with trade services up 14.0% and transportation and warehousing services up 19.3%. Other services rose 3.1%. The service increase was the highest since April 2022, when the annual rate was 17.7%, according to the report.
The September account also compares some monthly changes with August: goods prices rose 1.8% in September after a 0.9% increase the previous month. These measures describe changes in input prices, not retail prices for finished homes, and do not by themselves explain the causes of each price movement.
Pass-Through to Home Prices Unclear
The published figures show changes in input-price indexes, but they do not specify how much the increases will affect individual builders’ costs, bids or completed-home prices. The report does not provide a breakdown of how much of September’s movement came from particular supply, demand or other factors, and it does not forecast whether the increases will continue.
It is also unclear from the figures alone how quickly contractors or suppliers may adjust prices, or whether builders will absorb some costs, renegotiate contracts or pass them along. The data cover inputs to new residential construction; they are not a direct measure of costs for every renovation, commercial project or home purchase.
Watch for Subsequent Price Data
The next releases of construction-input price data will show whether September’s increases persist, ease or reverse. Builders and suppliers will be watching the separate movements in materials, energy and services, since the September figures show substantially different annual changes across those categories.
Any assessment of effects on homebuilding or affordability will also require information beyond the input index, including builders’ pricing decisions, construction activity and housing-market conditions. The September report provides a snapshot of costs, not a projection of future home prices or building activity.
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, according to the NAHB analysis of BLS data.
How much did building material prices increase?
Building material prices rose 0.4% in September and were 5.5% higher year over year. The report said that annual rate was the highest since December 2022.
Which costs rose fastest?
Among the reported categories, energy input prices rose 13.0% in September and were 64.1% higher than a year earlier. Service input prices were up 11.3% year over year, including a 19.3% increase in transportation and warehousing services.
Does this mean new homes will cost 10.3% more?
No. The 10.3% figure measures the annual change in an index of inputs to new residential construction. It is not a measure of home-sale prices, and the data do not show how much builders will pass through to buyers.
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