The construction market in Oxford has been grappling with ongoing material bottlenecks and rising prices of construction. Appliances, cabinetry, and finishes have also lengthen the completion date of new builds and remodels. These delays are driving home prices higher and pricing some prospective buyers out of the Oxford real estate market.

Producer Price Index

The Producer Price Index (PPI) report compiled by the U.S. Bureau of Labor Statistics

Rising costs of construction materials are impacting availability and completion times.

can be found here. The PPI report was led higher by a 25.4% increase in softwood lumber prices and 9.0% price increases for indoor and outdoor paint. The rate of increase in these inputs to residential construction is rapidly growing. Building materials prices increased 20.3%, year-over-year, and have increased by 28.7% since January 2020. The index has climbed 8.4% over the last 4 months! The PPI of most durable goods for a given month is based on prices paid for goods shipped in the survey month not the goods that were ordered.

Let’s look at the specific inputs to residential construction market in Oxford.

Softwood lumber has had some swings. The seasonally adjusted PPI increased 21.3% in December followed by 25.4% in January 2022.

Interior and exterior paint PPI increased by 9.0% in January. The prices of exterior and interior paint have climbed 30.3% and 21.2% year-over-year.

Ready-Mix concrete PPI has been volatile since mid-2020. It gained 1.4% in January after increasing 0.6% in December. The PPI has climbed 9.1% year-over-year.

Drywall gypsum products prices have gained 23.0%, year-over-year. This is the largest increase since data became available in 2012.

There is some good news. For the first time in a year and half, steel mill products declined 1.9% in January. Prices had more than doubled over the past 12 months.

Talk to one of our agents at Kiamie Real Estate to begin finding the perfect land or neighborhood for your new build!