Since the pandemic hit, it seems like construction materials and costs have been the number one topic of conversation for anyone involved in our business. Is what we need going to be available? If so, how much have prices gone up? We’ve talked about several headaches it’s caused our team, including parts shortages for electrical panels, difficulty finding steel and crazy prices for lumber.

A bit of good news here: According to economists at the Associated Builders and Contractors, construction input prices have dropped about 0.6%, year-to-year. This is the first of any pullback since the summer of 2020. What we are seeing is somewhat of a flatting of the cost increases as opposed to any decreases for most commodities, with the exception of lumber.

We have been in this business 40 years, and one thing I have learned is that nothing ever stays the same. Quantity of labor and supply chains still have a ways go, and I would say cost have increased about 30% over the last 2 or 3 years. It’s a combination of head and tail winds most of the time.