Building material prices are rising again in most of the countries where our readers work. Steel, aluminium, plumbing pipe, electrical cable and anything tied to fuel are leading the way. A few items, like cement and plasterboard, have eased. If you quote fixed prices, these shifts go straight to your margin.
New Zealand: timber and steel are climbing
The Cotality Cordell Construction Cost Index rose 1.1% in the three months to June 2026. Over the year it was up 3.5%. That is the biggest annual rise since mid-2023, but still below the long-term average of about 4%.
Cotality said structural steel, plumbing parts, insulation and aluminium roofing accessories were going up. Transport costs also rose with oil prices. It noted many builders are soaking up some of the increase through tighter margins.
The QV CostBuilder update for September 2026 showed trade rates up 0.2% on average for the month. Some items moved a lot more:
- Structural timber up 4.4% on average across six centres.
- Timber joists up 5.2%.
- Plywood cladding up 5.6%.
- Some formwork rates up 12.5%.
- Fire retardant roof underlay and wall wrap up 12%.
- Diesel up 2.3%.
On the other side, GIB products fell 1.9% on average and plasterboard linings overall fell 0.4%.
Australia: electrical and plaster costs up
The Australian Bureau of Statistics says the prices builders charge for new houses rose 2.0% in the June quarter 2026. That was the largest rise since September 2022. Over the year they were up 5.9%.
The cost of materials going into houses rose 2.1% in the quarter and 3.8% over the year. The main movers were:
- Electrical equipment up 7.4%, with electric cable and conduit up 11.2%, due to copper and PVC costs.
- Plaster products up 4.6%.
- Aluminium windows and doors up 3.2%.
- Stoves down 1.4% on weak demand.
The ABS also pointed to labour shortages, especially bricklayers, carpenters and concreters. The Cordell index for Australia rose 1.0% in the June quarter and 2.8% over the year. Cotality said suppliers are mostly passing on costs through fuel levies, freight fees and surcharges, rather than big list price rises. PVC and PEX pipe were among the products most affected.
United Kingdom: steel prices jump
The UK Department for Business and Trade says its index for all construction materials rose 6.4% in the year to August 2026. It rose 0.4% in August alone.
- Fabricated structural steel: up 21.2%.
- Rigid pipes and fittings: up 15.5%.
- Concrete reinforcing bars: up 12.5%.
- Imported sawn or planed wood: down 1.6%.
- Cement: down 0.8%.
- Ready-mixed concrete: down 0.7%.
United States: metals and fuel push costs higher
In the US, the Associated General Contractors of America reported that prices for inputs to non-residential construction rose 7.1% in the year to July 2026. Diesel was up 44.2%. Aluminium mill shapes rose 40.5% and steel mill products 22.5%. Lumber and plywood rose 9.9%, the biggest jump since March 2022. The AGC noted that many of the metal and petroleum products affected face tariffs of up to 50%.
For home building, the National Association of Home Builders said material prices excluding energy were up 4.6% in the year to June 2026. Softwood lumber was up 7.0%, while gypsum products such as plasterboard were down 1.1%.
The pattern across countries
There is a clear thread in the data. The big rises are in metals, fuel and things made from oil, like plastic pipe and some wraps. Fuel costs also feed into freight and delivery charges. Cement, concrete and plasterboard have been flatter or slightly cheaper in several places. Timber is mixed. It is rising in New Zealand and the US, but imported timber eased in the UK.
What it means for your business
- Check your quote validity periods. Shorter periods, or a clause that lets you pass on big material rises, can protect your margin.
- Watch delivery and fuel surcharges on supplier invoices. In Australia they are now a main way suppliers recover costs.
- Get fresh prices for steel, aluminium, copper and plastic pipe before you quote. These are the items moving fastest.
- Where a cheaper item has eased, like plasterboard in New Zealand, make sure your price list reflects it so you stay competitive.
- Review your own costs each quarter, not once a year. The official indexes are updated often, and so should your rates be.
Sources
- Residential construction costs continue to accelerate as building recovery gathers pace, Cotality NZ
- NZ construction costs edge up 0.2% despite cheaper GIB, NZ Adviser
- Producer Price Indexes, Australia, June 2026, Australian Bureau of Statistics
- Construction costs rebound to steady growth, Cotality Australia
- Construction building materials: commentary September 2026, Department for Business and Trade
- AGC: construction input costs climb 7.1% as war and tariffs drive up input costs, ConstructConnect
- Building material prices continue to rise despite energy price declines, National Association of Home Builders
This article is general information based on sources available in October 2026. Rules, prices and figures change, so check the current details with the official source where you work.