US housing prices surges as lumber prices climb in November

Posted on December 16, 2024   |  

Prices for inputs to new residential construction, excluding labor, capital investment, and imports, remained steady in November but increased 0.7% compared to the previous year, following a 0.3% rise in October.

Goods prices for construction inputs rose 1.2% year-over-year in November, while service prices dropped 0.3%.

Overall final demand prices increased 3.0% year-over-year, with goods demand up 1.1% and services demand up 3.9%.

Softwood lumber (not edge-worked) saw the highest price increase among construction inputs, jumping 13.7% year-over-year in November, while other wood products saw increases of less than 3%.

Prices for services used in residential construction stayed unchanged in November, but trade services, the largest component, dropped 1.2% compared to the previous year after falling 1.5% in October.

The price index for service inputs includes trade services, transportation, and other services, with trade services experiencing the biggest yearly decline in November.