In Q1 2025, U.S. construction material prices remained volatile, influenced by lingering supply chain issues and uncertainty regarding tariffs on imports.

Steel prices were notably high, driven by U.S. tariffs on foreign imports, pushing up costs for structural steel and reinforcement materials. Lumber, after a brief decline in late 2024, saw a 5-8% increase due to strong demand in the residential construction sector, particularly for framing and outdoor projects. Concrete prices rose modestly by 2-3% due to increasing energy and transportation costs. Additionally, fuel prices and labor shortages further exacerbated price increases across the board. The fluctuating costs of materials led contractors to seek more cost-effective strategies, including sourcing from local suppliers and exploring alternative materials.