Building material prices jump, raising pressure on Home Depot associates
Materials costs rose 3.7% in April, and the pressure is landing in contractor quotes, project delays, and more price pushback at the service desk.
Contractors and homeowners are running into a cost problem that is no longer abstract: prices of building materials used in residential construction, excluding energy, rose 3.7% in April, the fastest pace in three years. For associates at The Home Depot, that shows up as tougher estimate conversations, more substitution requests, and customers asking whether to buy now or wait.
The National Association of Home Builders said the inflation has been persistent, not a one-month spike. Building material prices have posted annualized inflation above 3% every month since July 2025, while inputs to new residential construction were up 5.9% year over year in April when energy was included. In the same breakdown, goods rose 6.1% and services rose 3.7%, a mix that points to pressure across the whole job, not just on one SKU.
Some of the sharpest moves were in the line items that matter on pro jobs. No. 2 diesel fuel was up 74.4% from a year earlier, asphalt rose 18%, and softwood lumber increased 1.1% after several months of easier comparisons. NAHB said those higher costs hurt housing affordability and add uncertainty around supplies and timing, which makes price changes harder to explain and harder for customers to absorb.
That is where store-floor knowledge matters. Associates who can clearly explain why a quote changed, what substitute product gets the job done, and whether a cheaper option is a temporary fix or a longer-term solution can help keep projects moving. The pushback is most likely to come when a customer is comparing materials for a roof repair, framing job, driveway work, or any project that depends on delivery and labor timing. In a volatile market, the sale often turns on trust as much as price.
The broader housing backdrop stayed soft. NAHB said builder sentiment fell in April because of economic uncertainty, rising building material costs and interest rates. Its first-quarter 2026 Remodeling Market Index came in at 62, down two points from the previous quarter but still in positive territory, suggesting remodeling demand held up even as costs stayed elevated.
Home Depot said on May 19 that first-quarter fiscal 2026 sales rose 4.8% to $41.8 billion, while comparable sales increased 0.6% and U.S. comparable sales rose 0.4%. CEO Ted Decker said underlying demand was relatively similar to fiscal 2025 despite greater consumer uncertainty and housing affordability pressure. The company reaffirmed fiscal 2026 guidance, and its pro business remains central as contractors keep pressing for clearer pricing in a market where every estimate carries more risk.
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