The housing market is flat — hampered by high mortgage rates and tightening credit standards. However, commercial and public construction spending is still on a tear. All commercial sectors are up considerably with the exception of hotels. There are some signs it may be cooling a bit, but that’s in the future. The infrastructure program continues its pace, with some sectors up 50 to 75%. Public construction is still up a whopping 20% with no sign of slowing down.
CONSTRUCTION MATERIALS
Material price increases are slowing down and are now hovering around 4 to 5%. The “sticky” rate of inflation over the last 5 years remains a problem, and it doesn’t look like it will ever be cured. Some materials have 5-year increases in the 20 to 50% range. Inflation is still a nagging problem. Oil seemed to have been stabilizing in the mid $80 range but has now found itself at $78 at time of printing, something to watch.
SAND & GRAVEL
Same story — six months later: We saw a softening in 2020 and a dramatic upturn in the fall of 2021. Last year, because of the volatility of oil, sand and gravel took off early but then slowed down. This year we’re continuing to see dramatically different numbers from several reporting agencies. It may be due to the regional aspect of quarries, but some agencies see gains of 20% and some 6%. So check your regional suppliers. This is another one to watch.
PLUMBING FIXTURES
The cost of plumbing fixtures was on a tear last year and has caught up to the rest of the market. Over the last 5 years it registered gains of 4% but it is now down to just a 1.5% increase. The COVID pandemic created a boom in home improvements and that probably fueled the rise.
