Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in the first half of 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over **** percent. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

Graph and download economic data for Producer Price Index by Industry: Building Material and Supplies Dealers (PCU44414441) from Dec 2003 to Aug 2025 about dealers, materials, supplies, buildings, PPI, industry, inflation, price index, indexes, price, and USA.

The construction output price in the United Kingdom has reached an annual growth rate of *** percent in June 2025 compared to the same month of the previous year. Construction costs had been increasing at a lower rate than in 2022 and 2023, but started rising again slowly in late 2024. The year-over-year growth rate was over ** percent in May and July 2022. Public and private housing was the construction segment with the highest output price increase. How have material costs developed over the years? Several factors influence construction material costs, including supply and demand, regulatory requirements, and transportation logistics. Manufacturing efficiency and global trade policies also play a big part, along with economic factors like inflation and currency fluctuations. In June 2022, the price of construction materials for new houses in the UK were ** percent higher than in 2015. What is the largest component of those costs? Labor costs are often one of the largest expenses in construction projects. That is due to the skilled nature of the work, which has a high demand for specialized trades. The construction sector's labor costs accounted for around ** percent of the sector's earnings in the United Kingdom in 2024. In the past years, the size of labor costs as a share of the construction sector have increased slightly, but they were still lower than in before 2014. As of June 2025, the construction output price growth rate has been revised to *** percent.

Building construction price indexes (BCPI), percent change, by type of building and construction division. Quarterly data are available from the first quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

The highest increase among the listed building materials in Russia was observed for sand in the North Caucasian Federal District at nearly *** percent in the first quarter of 2021. The most significant price fall was recorded for sand as well, in the Far Eastern Federal District. There, the average price of a thousand tons of this material dropped by about ** percent over the observed period.

Construction Output Price Indices (OPIs) from January 2014 to June 2025, UK. Summary

In 2023, the price of fabricated structural steel in the United Kingdom has fallen by over 20 percent. That came after the cost of that building material soared between 2020 and 2022. Most of that price increase happened in 2021, with a growth rate of 52.6 percent that year. Structural steel is widely used for construction because it is durable, malleable, and strong, while also being cheaper than many other metals. For example, it is often used as a structural material for skyscrapers and other buildings, as well as for infrastructure. Why has the price of steel increased? Those price increases seen until 2022 have not just affected the UK, but many other countries around the world. For example, the cost of fabricated structural metal in the U.S. and that of structural steel and other steel products in Germany reached their highest growth rate in 2022. Supply chain disruptions along with a decrease in the global production of crude steel in 2020 were some of the main reasons for those price hikes in 2021. In addition to that, the price of iron ore, which is the main component of steel, and energy also had a strong impact on the final price of steel products those years. Largest steel producers In the past couple of years, China was by far the largest steel producer in the world, with a production volume that was well over seven times higher than that of the second country in the ranking: India. Although the United States was also on that list along with Japan and Russia, it was not among the leading exporters of steel. The reason for that discrepancy is that a big share of the production in countries of the size of the U.S., China, and India goes to fill their own domestic needs. Meanwhile, nine of the 15 companies with the highest output of steel came from China, with the rest coming from Luxembourg, Japan, South Korea, India, and the U.S.

The Global Advanced Building Material market size was USD 57.21 million in 2022. Advanced Building Material Industry's Compound Annual Growth Rate will be 7.2% from 2023 to 2030. Market Dynamics of Advanced Building Material

Key Drivers of Advanced Building Material Market

Growing Government Expenditure to Provide Viable Market Output

Rising government expenditures in infrastructural development projects have become a key driver for the Advanced Building Material market. Increased funding for projects such as roads, bridges, and urban development demands innovative and durable materials that offer enhanced performance and sustainability.

In May 2021, Saint-Gobain invested around $320 million in India to establish manufacturing facilities for advanced building materials like advanced concrete and 3D printing. This strategic move aims to expedite construction timelines and enable timely project completion. Such initiatives play a pivotal role in boosting the growth of the advanced building materials market.

(Source:timesofindia.indiatimes.com/city/chennai/saint-gobain-to-invest-6k-cr-to-8k-cr-by-cy2025/articleshow/99858754.cms?from=mdr)

This trend not only stimulates demand for advanced materials but also encourages industry research and development, further propelling market growth and innovation.

Key restraints in Advanced Building Material Market

High Initial Investments Challenging the Hinder Market Growth

High initial investments pose a significant challenge in the market. Adopting advanced building materials often requires substantial upfront research, development, production setup, and specialized equipment costs. This can deter some businesses, particularly smaller ones, from entering the market. Additionally, construction projects with budget constraints might shy away from these materials, impacting their widespread adoption. Overcoming this challenge requires demonstrating the long-term benefits, such as energy savings, durability, and reduced maintenance, to justify the initial investments and encourage more widespread use of advanced building materials.

Impact Of COVID-19 on the Advanced Building Material Market

COVID-19 disrupted the Advanced Building Material Market by causing supply chain disruptions, labor shortages, and project delays. Lockdowns and restrictions halted construction activities, leading to reduced demand. Uncertainty prompted cautious spending on new materials. However, the pandemic highlighted the importance of resilient and sustainable materials, accelerating innovation interest. Remote work trends influenced building designs, boosting demand for technology-integrated materials. Introduction of Advanced Building Material

The Advanced Building Material Market is experiencing growth due to several factors. Increasing construction and infrastructure projects, urbanization, and population growth drive demand. Technological advancements lead to innovative materials and sustainable solutions, attracting investment. Additionally, rising awareness about energy efficiency and environmental concerns promotes the adoption of eco-friendly materials. These factors collectively contribute to the expansion of the Advanced Building Material Market.

In April 2022, Sherwin-Williams Co. purchased Sika AG's European industrial coatings business to expand its coating solutions. This acquisition is expected to enhance the company's customer outreach significantly.

(Source:www.pcimag.com/articles/109982-sherwin-williams-completes-acquisition-of-sikas-european-industrial-coatings-business)

Graph and download economic data for Producer Price Index by Commodity: Retail Trade Services: Hardware and Building Materials and Supplies Retailing (WPU58D10101) from Mar 2009 to Aug 2025 about hardware, materials, supplies, buildings, retail trade, sales, retail, commodities, services, PPI, inflation, price index, indexes, price, and USA.

Compared to the overall average of ** different major cities in the United States, building materials in San Francisco were more expensive than in Chicago. Opposed this is a city like Detroit, Michigian, where the price index of building materials was slightly below the average. What this overview tries to do, then, is compare the major cities against each other and whether one was relatively more expensive than the other when it comes to construction costs. This is especially visible for installation - such as HVAC. The city of New York reached an index of *** in ********, meaning installation costs here were around ** percent higher than the average cost for the ** cities combined. Cities found in the state of Texas made up the other end of that spectrum: Installation costs in San Antonio, Houston and Dallas were between ** to ** percent lower than the overall average.

This dataset contains the indices of UK hourly Construction Wage Costs (quarterly; not seasonally adjusted; 2000 = 100) and UK Construction Material Prices for New Housing, Other New Work, Repair and Maintenance, and All Work (monthly; 2010 = 100).

The prices of many construction materials in the United Kingdom kept increasing in 2024, but more moderately than in previous years. There were also several building materials whose prices fell that year. One of the most extreme examples was the price of flexible plastic pipes and fittings, which rose by over 14 percent that year. The price of a couple steel products fell by over 10 percent that year. In late 2024, copper-based products were among the building materials with the highest price increases in the U.S.

The price of construction materials in the Lima metropolitan area decreased slightly in 2024. That came after construction material prices saw growth rates of over ** percent in 2021 and 2022. Construction material costs have fluctuated significantly during the past decades, with prices decreasing in 2009 after a steep increase in the previous year. The annual growth rate of building material costs in Chile also peaked in 2022.

According to Cognitive Market Research, the Residential Construction Market Size was USD XX Million in 2024 and is set to achieve a market size of USD XX Million by the end of 2033, growing at a CAGR of XX% from 2025 to 2033.

Asia-Pacific held largest share of xx% in the year 2024 
Europe held share of xx% in the year 2024 
North America held significant share of xx% in the year 2024 
South America held significant share of xx% in the year 2024
Middle East and Africa held significant share of xx% in the year 2024 

MARKET DYNAMICS: Residential Construction Market

KEY DRIVERS

The increasing global population is driving the need for the residential construction market.

The worldwide population has been consistently rising and is expected to keep expanding over the upcoming years. As per the United Nations, the global population is projected to hit 8 billion in 2024 and is projected to reach a maximum of approximately 10 billion. The effects of this population increase are substantial, influencing multiple sectors such as housing and healthcare. With the rise in population, there is a related increase in the demand for residential housing, requiring careful planning and resource distribution to meet the escalating needs. To meet the demand, both government entities and private sector firms are elevating their construction activities. Governments in various nations, like India, are also focusing on the advancement of rural regions. These are the main factors that have been driving the expansion of the residential construction market. Moreover, the younger population is prevalent in the age demographics of emerging markets like India, Japan, and China. The younger generation is more drawn to newly designed homes than to older buildings. The need for increased living space during and following the coronavirus pandemic resulted in heightened demand for housing, with a significant flow of new immigrants driving household formation. This is yet another element that fuels the expansion of the residential building sector. Thus, the rising global population is fuelling the demand for the residential construction sector.

(Source:https://population.un.org/wpp/assets/Files/WPP2024_Summary-of-Results.pdf

https://www.cbo.gov/publication/60727)

Restraints

Volatility of raw material prices, such as steel, concrete, is hindering the growth of the residential construction market.

The expansion of the residential building market is increasingly hindered by fluctuations in raw material costs, especially for crucial materials like aluminium, steel, concrete, and softwood lumber. With the increasing prices of these construction materials, housing affordability suffers, creating greater difficulties for both developers and homebuyers.

This increase in prices is mainly influenced by the fundamental economic concept of supply and demand. In peak construction periods, the demand for building supplies increases significantly, yet availability frequently stays limited because of worldwide shortages and disruptions. These constraints inherently drive prices upward, worsening the problem. Adding to the issue are uncertainties in the production process and erratic timelines for material arrivals, which hinder builders from finishing projects on time. Widespread inflationary pressures in the overall economy further increase expenses, as the overall increase in prices for products and services inevitably affects construction materials.

Furthermore, numerous raw materials employed in home construction are commodities traded worldwide. This makes the market more vulnerable to additional volatility resulting from geopolitical conflicts, trade disagreements, and alterations in global trade regulations, all of which can interfere with supply chains and cause price surges. As reported by the Associated Builders and Contractors, construction material prices increased by 1.3% in January 2023 alone. This figure is not only 1.3% above December 2022, but it also indicates a 4.9% rise from the prior year. Even though this is the least annual rise since January 2021, it highlights the ongoing upward trend in material expenses.

In conclusion, the fluctuations in raw material prices caused by supply-demand disparities, inflation, and global market disturbances are greatly obstructing the expansion of the residential construction sector by increasing expenses ...

This industry consists of various noncommercial building construction markets, mainly healthcare, educational, religious, governmental and recreational facilities. Government funding accounts for almost all educational and public building construction, while the private sector funds most healthcare and religious constructions. Local and state government investment has grown over the past five years, while the federal government has passed record levels of infrastructure spending, benefitting the industry. Still, interest rate hikes have raised the cost of capital, driving down demand for big projects in recent years. Revenue has grown at an expected five year CAGR of 1.1% to reach $273.0 in 2025, when revenue is set to grow 1.4% as government investment has rebounded and the Federal Reserve has begun cutting interest rates but the second Trump administration has disrupted some spending. Contractors received support from surging demand for industry-relevant healthcare construction in the years following the COVID-19 pandemic. Still second to education, the healthcare market has grown as a share of industry revenue over the past five years. The industry as a whole has made price based gains as the price of key inputs, like cement, steel and oil, increased significantly over 2021 and 2022 due to supply chain disruptions which followed the pandemic. Along with rising wage costs, this has put downward pressure on average industry profit. As construction material prices have fallen slightly from their May 2022 peak, contractors have been able to expand average profit slightly, though average industry profit has still fallen overall over the past five years. Contractors would benefit from declining interest rates through the outlook period. Companies will benefit from more contract availability, especially as local and state government investment continues to climb. The second Trump administration has targeted Biden-era spending bills, like the Infrastructure Investment and Jobs Act, threatening public spending on municipal building construction, though some spending pauses have been legally challenged. High tariffs threaten to drive up materials costs. Still, revenue is set to climb at a CAGR of 1.5% to reach $294.6 billion in 2030.

Building construction price indexes (BCPI) by type of building. Quarterly data are available from the second quarter of 1982. The table presents quarter-over-quarter and year-over-year percentage changes for various aggregation levels. The base period for the index is (2017=100).

The Asia-Pacific building and construction sheets market is experiencing robust growth, driven by significant infrastructure development across the region, particularly in rapidly urbanizing nations like China and India. The market's Compound Annual Growth Rate (CAGR) exceeding 6% signifies consistent expansion, fueled by rising construction activity in residential, commercial, and industrial sectors. Increased disposable incomes and government initiatives promoting affordable housing are key drivers. The preference for lightweight, durable, and cost-effective building materials is boosting demand for polymer and metal sheets, while bitumen and rubber sheets maintain a significant presence in roofing applications. While challenges exist in the form of fluctuating raw material prices and potential supply chain disruptions, the overall market outlook remains positive. Technological advancements in material science are leading to the development of innovative sheets with improved performance characteristics, such as enhanced insulation and weather resistance, further stimulating market growth. Segmentation by material (bitumen, rubber, metal, polymer) and application (flooring, roofing, walls & ceilings, windows & doors) reveals diverse market dynamics, with roofing consistently representing a substantial portion of the overall demand. The regional breakdown, with China and India holding significant market shares, highlights the impact of these countries' burgeoning construction sectors. Growth is projected to continue through 2033, underpinned by sustained urbanization and infrastructure investment. The competitive landscape is fragmented, featuring both large multinational corporations and smaller regional players. Companies like Mitsubishi Chemical and Hindalco Industries represent established players with strong market positions, while local manufacturers contribute significantly to regional market share. Strategic partnerships, mergers, and acquisitions are likely to shape the industry landscape in the coming years, as companies seek to expand their reach and product portfolios. The market's success hinges on continuous innovation, cost optimization, and effective supply chain management to meet the growing demand and address the challenges posed by fluctuating raw material prices and global economic conditions. Future growth will be significantly impacted by the adoption of sustainable building practices and the increased emphasis on environmentally friendly materials. Recent developments include: December 2021: Hindalco Industries Limited, Aditya Birla Group's metals flagship and the world's largest aluminum rolling and recycling company, signed a definitive agreement to acquire Hydro's aluminum extrusions business in India for an enterprise value of INR 247 crores. This acquisition from Hydro, the Norway-headquartered aluminum and energy company, brings into the Hindalco fold an integrated facility located in Kuppam, Andhra Pradesh, an experienced team of employees, and the ability to serve a robust portfolio of reputed customers., November 2021: Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group, announced the acquisition of a 100% equity stake in Ryker Base Pvt. Ltd (Ryker), a wholly-owned subsidiary of Polycab India Limited. The acquisition will be through Hindalco's wholly-owned subsidiary, Renuka Investments & Finance Ltd. The purchase consideration for the equity stake is based on an enterprise value of INR 323 crores, subject to customary adjustments for working capital and net debt as of the date of closing.. Notable trends are: Asia-Pacific to Hold a Major Share of the Building and Construction Sheets Market.

The production price index (PPI) for construction materials and components in the United States decreased slightly in 2024. Up until 2020, construction prices had been rising fairly steadily. However, in the years after that construction producer prices have been very unstable. Production price index A PPI of *** in 2022, indicates that the real-world price has risen by *** percent in comparison to the base year - 1982 in this case. Similarly, under the same baseline, the PPI for construction machinery and equipment has also risen steadily until 2018. Like all prices, there are regional differences within the United States. The PPI acts as a measurement for the average changes in prices that domestic producers receive for their output. In the United States, the PPI is one of the oldest continuous statistical datasets published by the government. Common construction materials Some building materials are essential to construction work, and the decision on which to use is important for the life and the endurance of the building. Materials such as cement, steel, and sand are essential to many construction projects. The production of cement is tightly linked to the demand that comes from the construction industry. The durability and potency of steel gives it an advantage over wood and concrete, providing buildings with a higher resistance but a cheaper price tag. Sand is commonly used in buildings, but it is especially common in roads that require stones of various grades and granulation.

Demand for construction supplies largely depends on activity in downstream residential and non-residential construction markets, which depend on factors like exchange rates, supply chain disruptions and trading frictions. Construction supplies and equipment wholesalers across Europe have contended with numerous headwinds from the COVID-19 outbreak in 2020 to spiralling inflation and rock-bottom business confidence. Industry revenue is forecast to tumble at a compound annual rate of 4.1% over the five years through 2024 to €701.5 billion, including an estimated 4.4% drop in 2024, while the average industry profit margin is expected to edge downward to 5%. In 2021, demand for construction materials and equipment plummeted as the COVID-19 outbreak brought the downstream construction sector to a standstill. Despite lockdown measures gradually phasing out through 2022, construction supply wholesalers faced severe cost pressures amid supply chain disruptions, squeezing the average industry profit margin. In 2023, bleak economic conditions in the form of rising interest rates and subdued growth have put off many businesses from undergoing investment projects, hitting demand for construction supplies and equipment. Construction Materials, Equipment & Supplies Wholesaling revenue is forecast to climb at a compound annual rate of 2.1% over the five years through 2029 to reach €780.2 billion, while the average industry profit margin is expected to reach 5.2%. Construction activity is expected to pick up over the coming years, inflation cools, and interest rates start to edge downwards despite lingering uncertainty in the short term as the effects of interest rate hikes and low business sentiment hit demand. Construction wholesalers will continue to focus on offering eco-friendly and sustainable construction materials in the coming years, supporting revenue growth.

Lumber rose to 613.55 USD/1000 board feet on October 21, 2025, up 0.58% from the previous day. Over the past month, Lumber's price has risen 7.83%, and is up 17.20% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on October of 2025.