Building Costs in 2025: How Prices Have Skyrocketed Since 2020
One of the first questions clients often ask when inquiring about construction services is, “What are building material prices like right now?”. It’s totally understandable that many people zero in on lumber prices, thinking they give a clear picture of overall construction costs. But the truth is, that’s just part of the story.
Comparing Two Material Quotes: 2020 vs. 2024
To shed some light on this, we took a look at two quotes from our reliable local lumber yard. The first one, from November 2020, came during a time of wild price swings, with quotes only good for two weeks. The second quote, from July 2024, had pricing that was valid all the way into early 2025.
Lumber Price Comparison
Prices have dropped significantly since 2020:
| Item | 2020 Price | 2024 Price | Change |
|---|---|---|---|
| 2x4 stud (92 5/8") | $6.32 | $4.18 | -34% |
On average, lumber prices have seen a drop of about 30% over the last four years. But don’t let that fool you into thinking that building a home has become cheaper. In fact, many other materials have shot up in price during this same timeframe.
Material Increases Across the Board
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Material Increases Across the Board
Here are some key takeaways from our price comparison between 2020 and 2024:
- House wrap (like Tyvek): Up 31%
- Zip tape (for sealing sheathing): Up 28%
- ICF blocks (insulated concrete forms): Up 36%
- Drywall sheets: Up 60%
- Drywall screws: Up 35%
- Siding (e.g., LP SmartSide): Up 22–23%
- Asphalt shingles: Up 33%
- Ice & water roofing underlayment: Up 39%
- Gutter apron metal flashing: Up 49%
Decking Materials Tell a Similar Story
- Redwood (2x6x16): Up 49%
- Composite decking (Spiced Rum TX): Up 45%
- Deck fascia (TX fascia): Up 38%
Clearly, while lumber prices have eased from their pandemic highs, many other materials have been on a steady rise.
Volatile Lumber ≠ Cheaper Construction
Lumber prices are known for their ups and downs. Even though they’ve fallen from their peak in 2020, other crucial materials have been steadily climbing in price.
So, when you’re looking at construction costs, remember it’s not just about the 2x4s. It’s about the whole range of materials and that gives you a clearer picture of what it really costs to build today.
Partner with iLevel Construction for Trustworthy Construction Services
At iLevel Construction, we understand how complicated material pricing may be and how it affects your construction projects. Our broad construction services are designed to assist you overcome these issues while keeping your project on budget and on pace.
Contact iLevel Construction now to find out how our team can make your idea a reality.
We made a video covering this topic, watch full video below!
