Building materials made of copper had some of the highest price growth rates in the U.S. in December 2024 in comparison to the previous year. The growth rate of the cost of many construction materials was much lower than in 2023. 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 the inflation trends in the U.S. at that time, the price growth rate of construction materials in the UK were generally lower 2023 than in 2022. Nevertheless, the cost of some construction materials in the UK still soared that year, with several of those items reaching price growth rates of over 10 or even of over 14 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.

The construction output price in the United Kingdom has reached an annual growth rate of two percent in September 2024. Construction costs have been increasing at a lower rate than in 2022 and 2023. The year-over-year growth rate reached over 10 percent in May and June of 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 53 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 58 percent of the sector's earnings in the United Kingdom in 2023. In the past years, the size of labor costs as a share of the construction sector rose by more than three percentage points, indicating that labor costs have increased at a faster rate than the overall revenue of the industry.

Construction Output Price Indices (OPIs) from January 2014 to December 2024, UK. Summary.

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).

Infrastructure construction price index (ICPI). Annual data are available from 2010. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2010=100).

As of February 2025, the monthly price index for construction materials in Japan stood at 141.8 points. This represented a decrease of 0.1 index points compared to the same month in 2023.

The price expectations in the construction sector of the European Union started increasing slightly in the second half of 2024. That price growth, however, seems to be more moderate than previous price hikes. That happened after price growth expectations fell from its peak in 2022. In February 2025, the index reached a value of over 4, which indicates that there were slightly more respondents expecting the price to keep rising than the ones expecting it to fall.

Between 2022 and 2024, the construction price of residential and non-residential buildings in Canada has grown at the same pace. The price of both types of buildings was roughly six percent higher in the last quarter of 2024 than in 2023, which is the year when the index base was set at 100. Nevertheless, that only considers the cost of buildings in 15 selected metropolitan areas in Canada. Toronto was by far the metropolitan region with the highest construction costs in Canada.

What determines construction costs? The growth rate of the construction price of different types of buildings tends to follow similar trends to some extent. For example, price growth rates in Canada for most types of buildings were more moderate in 2023 than in previous years. However, those figures show a lot of disparity, with the cost of building a high rise apartment building growing much faster than that of other types of buildings. This might be because the construction costs depend on elements such as the location, materials, and complexity of the building, which tend to be quite different for each type of building.

Lumber building materials in Canada In 2023, Canada was the world’s second-largest exporter of wood building materials such as veneer sheets, parquet flooring, particleboard, laminated wood, and builders’ joinery and carpentry. Forestry, logging, and processing wood into ready-to-use materials are important industries in the Canadian economy. High price growth rates of building materials impact negatively the construction industry as their activities become more expensive. However, the forestry and logging industry benefited from the cost of lumber rising in 2020 and 2021. In the past years, the price of lumber, however, has fallen again.

Brazil National Construction Cost Index: INCC-M data was reported at 1,074.292 Aug1994=100 in Jun 2023. This records an increase from the previous number of 1,065.289 Aug1994=100 for May 2023. Brazil National Construction Cost Index: INCC-M data is updated monthly, averaging 405.212 Aug1994=100 from Jun 1989 (Median) to Jun 2023, with 353 observations. The data reached an all-time high of 1,074.292 Aug1994=100 in Jun 2023 and a record low of 0.000 Aug1994=100 in Jun 1989. Brazil National Construction Cost Index: INCC-M data remains active status in CEIC and is reported by Getulio Vargas Foundation. The data is categorized under Brazil Premium Database’s Construction and Properties Sector – Table BR.EA001: National Construction Cost Index.

Building construction price indexes (BCPI) by type of building. Quarterly data are available from the first quarter of 1982. The table presents data for the most recent reference period and the last four periods. The base period for the index is (2017=100).

This table contains monthly figures on the input price index of new dwellings; input price indices building costs to monitor the costs of new dwellings (labour and materials) in the Netherlands.

An input price index is determined on the basis of price changes of the various cost components making up the product - in this case a new dwelling. Changes in the prices of building equipment (tools and machinery), general costs, profit and risk are not included in the input price index. Other cost components, such as energy and transport, are also not taken into account as their influence on the final cost price is relatively modest. Land costs are also not included in the index.

Data available from: January 2012 to December 2023

Status of the figures: The figures of the wages and total building costs are definite up to and including the year 2022. The figures of the building materials are definite up to and including six months from the most recent reported month. The data for 2023 is provisional. Since this table has been discontinued, the data is no longer finalized.

Changes as of February 29, 2024 The index number series in this table use 2015 as the reference year (2015=100). To ensure that the results of the index series are more in line with current events, a so-called base shift is implemented once every five years. Due to the implementation of FRIBS (Framework Regulation Integrating Business Statistics) in 2021, this time the base shift is postponed by one year to 2021=100. The subsequent base shift will return to a regular year, namely 2025=100. Upon the publication of the reporting period of January 2024, such a base shift will occur, and the reference year will be switched to 2021 (2021=100). The index series with the reference 2021=100 will be published in new StatLine tables. This table will be discontinued from that moment and will no longer be updated. However, it will remain available in the archive. The new tables for 2021=100 will commence with the reporting month of January 2018.

Changes as of March 11, 2024 This table has been discontinued. This table is followed by New dwellings; input price indices building costs 2021=100. See paragraph 3.

In 2023, the price of building materials in Mexico increased at a significantly lower rate than in 2021 and 2022. The annual growth rate of salaries in 2023 was much higher than that of the other types of construction costs. Salaries had an annual growth rate from around three to four percent until 2016, since then they have been rising at a faster pace. Building construction, along with transport and urbanization, were the segments that made up most of the production value in the industry.

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US Residential Construction Market Size 2025-2029

The residential construction market size in the US is forecast to increase by USD 242.9 million at a CAGR of 4.5% between 2024 and 2029.

The residential construction market is experiencing significant growth, driven by several key factors. Firstly, the increasing household formation rates in the US continue to fuel demand for new housing units. Secondly, there is a rising focus on sustainability in residential construction projects, with homebuilders increasingly adopting energy-efficient and eco-friendly building materials and practices.
However, the market also faces challenges, including a shortage of skilled labor for large-scale residential real estate projects, which can impact project timelines and budgets. These trends and challenges are shaping the future of the residential construction industry in the US.

What will be the US Residential Construction Market Size During the Forecast Period?

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The residential construction market is experiencing a significant shift as the affordable housing trend gains momentum. The Federal Reserve's decision to keep the federal funds rate low has contributed to a decrease in mortgage rates, making it an opportune time for home buyers to enter the market. However, the housing supply remains a concern, with construction spending in the residential investment sector showing only modest growth. The labor market's current state is another factor influencing the residential construction industry. With a low unemployment rate, there is a high demand for labor, leading to increased wages and, in turn, higher construction costs.
Inflation also poses a challenge, as it erodes the purchasing power of home buyers and builders alike. The economy's overall health plays a crucial role in the residential construction market's dynamics. A strong economy typically leads to increased demand for new homes, as evidenced by the double-digit growth in housing starts and building permits for single-family homes. However, a recession can lead to a significant decrease in construction activity, as seen in the cancellation rate of housing projects. The Federal Reserve's interest rate decisions, inflation, and the economy's health all impact the residential construction market. Affordable housing programs, such as housing choice vouchers and fair housing programs, play a vital role in ensuring access to housing for a broader population. The construction sectors must navigate these market dynamics to remain competitive and meet the demand for new homes.
The US residential construction market is seeing significant shifts, driven by various housing market trends. Sustainable homebuilding practices are gaining momentum, with a focus on energy-efficient homes and green building materials. Modular construction and prefab housing are becoming increasingly popular for their cost-effective and timely solutions. Urban redevelopment projects are revitalizing city areas, while suburban expansion is fueling demand for new homes. Affordable housing projects are crucial in addressing housing shortages, and real estate investment continues to thrive in these sectors. Smart home integration is also on the rise, with luxury home construction embracing high-tech features. The impact of mortgage rates, coupled with multifamily housing growth and home renovation demand, adds complexity to the market's dynamics.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Apartments and condominiums
  Villas
  Other types


Type

  New construction
  Renovation


Application

  Single family
  Multi-family


Geography

  US

By Product Insights

The apartments and condominiums segment is estimated to witness significant growth during the forecast period.

The residential construction market in the US is experiencing growth in the apartment and condominium sectors, driven by shifting preferences and lifestyle choices. Urbanization is a significant factor fueling this trend, as more individuals opt for the conveniences and amenities offered in urban areas. As a result, developers are constructing modern, sustainable, and community-focused living spaces in the form of high-rise apartment buildings and condominium complexes. These structures cater to various demographics, including intergenerational groups and younger generations, reflecting diverse living circumstances. The labor economy and vaccination rates have also contributed to the continued activity in the residential sector, allowing for steady progress in construction projects. While the non-residential sector has faced challenges, the residential sector remains a vi

Housing Index in Sri Lanka decreased to 1510.10 points in the fourth quarter of 2023 from 1517.90 points in the third quarter of 2023. This dataset provides - Sri Lanka Housing Approvals - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Indonesia Wholesale Price Index: Construction Materials: Commodities: Foundation Stones data was reported at 101.480 2023=100 in Feb 2025. This records an increase from the previous number of 101.470 2023=100 for Jan 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Foundation Stones data is updated monthly, averaging 101.470 2023=100 from Dec 2024 (Median) to Feb 2025, with 3 observations. The data reached an all-time high of 101.480 2023=100 in Feb 2025 and a record low of 101.470 2023=100 in Jan 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Foundation Stones data remains active status in CEIC and is reported by Statistics Indonesia. The data is categorized under Indonesia Premium Database’s Inflation – Table ID.IB005: Wholesale Price Index: by Sector: Construction Materials.

Indonesia Wholesale Price Index: Construction Materials: Commodities: Landfill Soil data was reported at 100.000 2023=100 in Feb 2025. This stayed constant from the previous number of 100.000 2023=100 for Jan 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Landfill Soil data is updated monthly, averaging 100.000 2023=100 from Dec 2024 (Median) to Feb 2025, with 3 observations. The data reached an all-time high of 100.000 2023=100 in Feb 2025 and a record low of 100.000 2023=100 in Feb 2025. Indonesia Wholesale Price Index: Construction Materials: Commodities: Landfill Soil data remains active status in CEIC and is reported by Statistics Indonesia. The data is categorized under Indonesia Premium Database’s Inflation – Table ID.IB005: Wholesale Price Index: by Sector: Construction Materials.

United States - Producer Price Index by Industry: Electrical Contractors, Nonresidential Building Work: Primary Products was 171.28000 Index Dec 2007=100 in January of 2025, according to the United States Federal Reserve. Historically, United States - Producer Price Index by Industry: Electrical Contractors, Nonresidential Building Work: Primary Products reached a record high of 175.80000 in March of 2023 and a record low of 100.00000 in December of 2007. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Producer Price Index by Industry: Electrical Contractors, Nonresidential Building Work: Primary Products - last updated from the United States Federal Reserve on March of 2025.

Wholesale Price Index: Construction Materials: Commodities: Bolts and Nuts data was reported at 106.120 2023=100 in Feb 2025. This records an increase from the previous number of 105.000 2023=100 for Jan 2025. Wholesale Price Index: Construction Materials: Commodities: Bolts and Nuts data is updated monthly, averaging 105.000 2023=100 from Dec 2024 (Median) to Feb 2025, with 3 observations. The data reached an all-time high of 106.120 2023=100 in Feb 2025 and a record low of 104.390 2023=100 in Dec 2024. Wholesale Price Index: Construction Materials: Commodities: Bolts and Nuts data remains active status in CEIC and is reported by Statistics Indonesia. The data is categorized under Indonesia Premium Database’s Inflation – Table ID.IB005: Wholesale Price Index: by Sector: Construction Materials.

United States Pipe For Building Construction Market size was valued at USD 11,387.16 Million in 2023 and is projected to reach USD 16,825.80 Million by 2031, growing at a CAGR of 5.09% from 2024 to 2031.

United States Pipe For Building Construction Market Overview

The growing construction in the U.S. is a significant driver of the U.S. Pipe for Building Construction Market in the near future. Pipe has a multiple application in construction of building for example it is used for water distribution, sewage and drainage, HVAC, electrical wiring, stormwater drainage, etc. Growing population, increasing construction activities, and growing infrastructure development driving the construction industry in the U.S. The construction industry is important to the US economy, with over 745,000 enterprises employing around 7.8 million people annually. Total construction spending in 2023 was $1.98 trillion, up 7.4% from the previous year. Nonresidential building grew 17.6% year on year, whereas residential construction spending declined by 3% due to rising interest rates and inflation. The construction industry accounts for roughly 4.3% of U.S. GDP.

However, the labor shortages in the construction industry is anticipated to negatively affect the market growth. The construction industry relies heavily on skilled labor to install and maintain piping systems efficiently and safely. However, the shortage of qualified workers delays project completion, which in turn postpones the demand for construction materials, including pipes. This labor shortfall became particularly pronounced during the COVID-19 pandemic and has persisted into 2023, affecting the pace at which new projects can be initiated and completed.

In March 2024, Mumbai had the highest construction cost index at 129, while Chennai had the lowest at 124. During the presented period, the construction cost reached its peak in March 2022.