As of Q2 2025, the U.S. construction materials market is facing sustained cost pressures and supply challenges driven by tariffs, labor shortages, and increased demand from infrastructure and post-disaster rebuilding efforts.

Steel and aluminum prices have surged due to tariffs, while lumber costs are rising amid Canadian mill closures and wildfire recovery. Concrete prices are also expected to climb by 5–8% due to higher transportation costs and continued demand from public works projects. Drywall and other interior materials, like joint compounds and acoustic tiles, are experiencing moderate price increases, driven by gypsum shortages and rising trucking fees. These material cost hikes are putting additional strain on construction budgets, especially in residential housing. As the year progresses, material costs are expected to remain volatile, with continued pressure from both domestic production constraints and international trade policies.