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Residential Construction Input Prices Move Higher In April – Eye On Housing

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Prices rose across a host of goods and services used in residential construction. Rising energy prices were the primary driver, but transportation service prices also rose at their fastest pace since 2022. Meanwhile, building material prices, excluding energy, rose at their highest yearly rate in three years, up 3.7% from a year ago.

The Producer Price Index for final demand increased 1.4% in April, after rising 0.7% in March. Compared to a year ago, final demand prices were up 6.0%. The index for final demand services rose 1.2% in April, while the index for final demand goods rose 2.0% over the month.

The price index for inputs to new residential construction rose 1.3% in April and was up 5.9% from last year. The price of goods used in new residential construction was up 1.2% over the month and up 6.1% from last year, while the price of services was up 1.3% over the month and up 3.7% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 1.2% in April.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 13.8% in April and were 39.4% higher than a year ago. Building material prices were up 0.1% in April and up 3.7% compared to one year ago. Building material prices have continued to grow above 3.0% since July of last year.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 74.4% higher than a year ago. Asphalt prices rose 18.0% higher than April 2025 after declining in March. Softwood lumber prices were up 1.1% in April after declining on a yearly basis for several months. Fewer materials showed yearly price declines than in March. Particleboard and fiberboard prices were down 12.0%, while softwood veneer/plywood prices were down 1.7%.

Input Services

Prices for service inputs to residential construction reported an increase of 1.3% in April. On a year-over-year basis, service input prices were up 5.6%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 5.6% from a year ago. The price of transportation and warehousing services rose 15.3%, while prices for other services were up 1.6% over the year. Long-distance motor carrying service prices rose 10.4% in April and were 18.3% higher than a year ago, while local motor carrying service prices rose 1.4% in April and were 6.3% higher than a year ago. These are the two transportation services that are represented as inputs in the residential construction price index.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Private Residential Construction Spending Increases in March – Eye On Housing

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Private residential construction spending was up 1.7% in March 2026, following two straight months of declines. The increase was broad-based, with gains in single-family, multifamily construction, and home improvement spending. Moreover, total private residential construction spending was 3.6% higher than a year ago.

According to the latest construction spending data from the U.S. Census, single-family construction spending increased 2.7% in March, consistent with the steady builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Despite the monthly gain, single-family construction spending was down 4.2% over a year ago. Meanwhile, multifamily construction spending edged up 0.3% in March. This marks the second monthly increase after two consecutive months of modest declines. Compared to a year earlier, multifamily spending was 0.5% higher. Improvement spending (remodeling) also increased in March, rising 0.9% for the month. Remodeling remained a bright spot on a year-over-year basis, with spending up 14.3% from March 2025.

The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.

Spending on private nonresidential construction was down 2.1% over a year ago. The annual private nonresidential spending decrease was driven by a $39 billion drop in manufacturing construction spending.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Slight Rise for Open Construction Jobs in March – Eye On Housing

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The number of open positions in the construction sector edged higher in March, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. However, recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy declined, falling from 6.92 million in February to 6.87 million in March. The March reading was down from a year ago (6.95 million) due to a cooling labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further. However, this is situation is complicated by rising energy costs due to the Iran war.

The number of open construction sector jobs increased for the month, rising slightly from 201,000 in February to 224,000 in March. This total was down compared to a year ago (278,000). The chart below notes the declining trend that has been in place for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data centers). This has produced volatility within a reduced range in the job openings series since 2024.

The construction job openings rate increased to 2.6% in March, down from the 3.3% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.7% in March. The quits rate increased to 1.7% for the month.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Student Housing Construction Investment Holds Steady in the First Quarter of 2026 – Eye On

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Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.

Private fixed investment in student housing experienced a surge after the Great Recession, as college enrollment increased from 17.2 million in 2006 to 20.4 million in 2011. However, during the pandemic, private fixed investment in student housing declined drastically from $4.4 billion (SAAR) in the last quarter of 2019 to $3 billion in the second quarter of 2021. According to the National Student Clearinghouse Research Center, college enrollment fell by 3.6% in the fall of 2020 and by 3.1% in the fall of 2021.

Since then, private fixed investment in dorms has rebounded, as college enrollments show a gradual recovery from pandemic-driven declines. Effective in-person learning requires college students to return to campuses, boosting the student housing sector. Still, demographic trends are reshaping the outlook for student housing. The U.S. faces slower growth in the college-age population as birth rates declined following the Great Recession. As a result, total enrollment in postsecondary institutions is projected to only increase 8% from 2020 to 2030, according to the National Center for Education Statistics, well below the 37% increase between 2000 and 2010.

Despite recent fluctuations, student housing construction shows signs of recovery, and future growth is expected in response to increasing student enrollment projections.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Higher Energy Prices Increase Residential Construction Costs – Eye On Housing

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Energy input prices increased in March at their fastest pace since June of 2020 as the conflict in Iran shocked critical global supply chains. Building material prices, excluding energy, rose for the eleventh straight month. Price growth for trade services slowed while transportation and warehousing price growth accelerated.  

The Producer Price Index for final demand increased 0.5% in March, after rising 0.5% in February. The index for final demand services was unchanged in March, while the index for final demand goods rose 1.6% over the month.

The price index for inputs to new residential construction rose 1.2% in March and was up 3.8% from last year. The price of goods used in new residential construction was up 1.8% over the month and up 4.3% from last year, while the price of services was up 0.3% over the month and up 3.1% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 1.8% in March.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 21.4% in March and were 20.8% higher than one year ago. The monthly increase in March was the largest since prices rose 30.6% in June 2020. Building material prices were up 0.4% in March and up 3.1% compared to one year ago.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 51.2% higher than a year ago. Metal molding and trim continued to show high price increases, as there were up 45.5% from last year. On the opposite end, the largest yearly declines in prices were for particleboard and fiberboard with prices down 15.7%. Notably, asphalt reported a price decline of 12.3% in March. For key inputs, ready-mix concrete prices were 0.5% higher than a year ago while softwood lumber prices were 7.8% lower than a year ago.

Input Services

Prices for service inputs to residential construction reported an increase of 0.3% in March. On a year-over-year basis, service input prices were up 3.1%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 3.3% from a year ago. The price of transportation and warehousing services rose 6.2%, while prices for other services were up 1.5% over the year.

Expanded Inputs to New Construction Data

Within the PPI that BLS publishes, new experimental data was recently published regarding inputs to new construction. The data expands existing inputs to industry indexes by incorporating import prices with prices for domestically produced goods and services. With this additional data, users can track how industry input costs are changing among domestically produced products and imported products. This data focuses on new construction, but the complete dataset includes indices across numerous industries that can be found here on BLS website.

New construction input prices are primarily influenced by domestically produced goods and services, with domestic products accounting for 90% of the weight of the industry index for new construction. Imported goods make up the remaining 10% of the index.

The latest available data, for January 2026, showed that domestically produced goods continue to show price growth compared to imported goods used in new construction. On a year-over-year basis, the index for domestic goods increased 2.6%, while prices for imported goods have fallen 2.7%.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Which States and Construction Trades Depend the Most on Immigrant Workers? – Eye On Housing

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Immigrants’ share of the construction workforce reached a record high in 2024, with foreign-born workers accounting for more than a quarter of the industry’s labor force (26.3%). The share is even higher among construction trades, for which one in three craftsmen is foreign-born. In several states, reliance on foreign-born labor is especially pronounced: immigrants make up more than 40% of the construction workforce in California and Florida, 39% in Texas, and 38% in Nevada.

According to the government’s occupational classification system, the construction industry employs workers across roughly 390 occupations. Of these, only 28 are construction trades, yet these workers account for about 60% of the total construction labor force. The remaining workers are in finance, sales, administration, and other off-site roles.

The concentration of immigrants is particularly high in key construction trades essential to home building, including drywall and ceiling tile installers (57%), plasterers and stucco masons (56%), roofers (53%), painters (53%), and carpet, floor, and tile installers (51%).

The two most prevalent construction occupations, laborers and carpenters, account for more than a quarter of the industry’s labor force. Among them, 35% of carpenters and 43% of construction laborers are foreign-born. These trades typically require less formal education, yet such workers consistently rank among those with the most severe labor shortages, according to the NAHB/Wells Fargo Housing Market Index (HMI) and NAHB Remodeling Market Index (RMI) surveys.

In the April 2025 HMI survey, more than half of builders reported either some or a serious shortage of workers performing finished carpentry. Shortages are similarly widespread for other construction trades directly employed by builders, such as bricklayers and masons, despite the relatively high share of immigrant workers in these occupations.

Labor shortages are also common among more technical trades such as electricians, plumbers, and HVAC technicians. In contrast to labor-intensive trades, these occupations typically require longer formal training, often involve professional licensing, and tend to attract fewer immigrant workers. Over 40% of surveyed builders reported deficits in these skilled trades.

The reported craftsmen shortage is somewhat less acute for trades where the foreign-born presence is more pronounced, such as drywall, ceiling, flooring installers, painters, and roofers – the trades where immigrants make up more than half of the workforce.

More than half (52%) of the nation’s three million immigrant construction workers reside in the four most populous states – California, Texas, Florida, and New York. California and Texas each have over half a million foreign-born construction workers; together, these states account for roughly one-third of all immigrant workers in the industry. Florida and New York contribute an additional 19% combined.

These states are not only the largest by population but also longstanding immigrant gateways, making them particularly reliant on foreign-born construction labor. Immigrants comprise 42% of the construction workforce in California and 41% in Florida, followed by 39% in Texas and 37% in New York.

At the same time, reliance on foreign-born labor is expanding beyond these traditional hubs. Nevada, for example, recorded the fourth-highest share of immigrant construction workers in 2024 (38%), closely trailing Texas. Maryland and New Jersey also reflect this broader trend, with immigrants accounting for 37% of the construction labor force in each state.

In Connecticut, Massachusetts, Georgia, Virginia, Illinois, Arizona, and North Carolina, more than one-quarter of construction workers are foreign-born. At the other end of the spectrum, several states, including New Hampshire, Montana, Alaska, West Virginia, and Vermont, have immigrant shares below 5%.

Because immigrant workers are disproportionately concentrated in construction trades, their presence among craftsmen exceeds their overall share of the industry in every state. In California and Texas, immigrants account for more than half of all construction tradesmen. In Florida, Maryland, and Nevada, the shares are similarly elevated, approaching 50%, while in New Jersey and New York, more than 45% of craftsmen are foreign-born.

While most states draw most of their immigrant foreign-born workers from the Americas, Hawaii relies more heavily on Asian immigrants. European immigrants are a significant source of construction labor in New York, New Jersey, and Illinois.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Private Residential Construction Spending Slips in January – Eye On Housing

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Private residential construction spending declined 0.8% in January 2026, following two months of gains. This decline was driven by lower spending across single-family, multifamily construction, and home improvement.  Despite the monthly decline, total residential construction spending remained 2.3% higher than a year ago.

According to the latest construction spending data from the U.S. Census, single-family construction spending edged down by 0.2% in January, consistent with the softer builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending was down 5.8%. Meanwhile, multifamily construction spending also decreased mildly, falling 0.7% in January. This marks the second monthly decrease following six consecutive months of modest gains. Compared to a year earlier, multifamily spending was 0.4% higher. Improvement spending (remodeling) declined 1.4% for the month but remained a bright spot on a year-over-year basis, rising 12.5%.

The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.

Spending on private nonresidential construction was down 3% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $35 billion drop in manufacturing construction spending, followed by a $0.8 billion decrease in commercial construction spending.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Soft Construction Labor Market Shows Decline for Open Positions – Eye On Housing

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The number of open positions in construction in February was down year-over-year, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. However, recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy declined in February, falling from 7.24 million in January to 6.88 million in February. The February reading was down from a year ago (7.24 million) due to a cooling labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further.

The number of open construction sector jobs fell, declining slightly from 230,000 in January to 202,000 in February. This total was down compared to a year ago (255,000). The chart below notes the declining trend that has been in place for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data centers). This has produced volatility within a reduced range in the series since 2024.

The construction job openings rate decreased to 2.4% in February, down from the 3% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.8% in February. The quits rate decreased to 1.3% for the month.

The current data looks similar to the much discussed low-hire, low-fire labor market paradigm.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Fourth Quarter 2025 Multifamily Construction Data – Eye On Housing

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According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the fourth quarter of 2025. For the quarter, 96,000 multifamily residences started construction. Of this total, 91,000 were built-for-rent. This built-for-rent total was 18% higher than in the fourth quarter of 2024. This marks a significant increase, and it is possible these numbers will be revised lower in future Census data given other multifamily data reporting.

The market share of rental units of multifamily construction starts was 95% for the fourth quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the fourth quarter, there were 6,000 multifamily condo unit construction starts, flat from a year ago.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the fourth quarter 2025 data, the average square footage of multifamily construction starts increased to 1,068 square feet. The median increased to 1,048 square feet. These measures are consistent with the elevated share of multifamily built-for-rent construction.



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Best Year for Missing Middle Construction Since 2007 – Eye On Housing

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While not a huge jump, 2025 featured the highest construction volume for multifamily missing middle housing starts.

The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession.

For the fourth quarter of 2025, there were 5,000 2- to 4-unit housing unit construction starts. This was flat compared to the fourth quarter of 2024.

Over the course of 2025, there were 19,000 such starts, up 6% compared to 2024 (18,000). Nonetheless, this subsector of residential construction continues to underperform relative to its potential, due in part to zoning restrictions.

As a share of all multifamily production, 2- to 4-unit development was just 5% of total multifamily development for the fourth quarter. This remains lower than recent historical trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction.

Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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