August 2025 Whole House Commodity Index

By Don Magruder

The RoMac Building Supply Whole House Commodity Index (Index) for August 2025 dropped to $51,071 or 1.0 percent from the prior month as slow demand has resulted in a price capitulation in some base building material products. This is the second month of declines, and oddly, the increases in some lumber components due to increased Canadian duties were offset by declines in these other areas. Interestingly, manufacturers and importers have started in earnest announcing price increases for later in August and the first of September because of the imposition of new tariffs in August.  

The other aspect of the delayed increases due to tariffs is the sell-down of pre-tariff inventories.  A manager of a large importer of building material components explained to me that the heavy inventory of imported merchandise from the spring is beginning to dwindle, and they expect a continuous stream of price increases.  While there is a chance of some additional price capitulation due to slower housing demand, the crux of the problem is that no one in the supply chain is seeing any capitulation in cost. Labor costs, equipment costs, and fixed costs such as insurance are not going down, and this squeeze will limit price decreases.  For many, the capitulation will be product curtailments or shuttering production.  The 3.1 percent increase in the Whole Price Index this week is the best evidence of the squeeze many are feeling in the supply chain.

Here are the significant price movers in the August Index. 

1. Foundation wire mesh retreated 4.4 percent on low demand, but rebar added 1.0 percent. 

2. CDX pine plywood was up 4.9 percent while OSB retreated 10.0 percent.  It does appear the price capitulation in OSB has probably ended, as these markets have stabilized and increased in the last couple of weeks.

3. Dimension spruce was up 1.8 to 2.6 percent while SPF studs added 5.2 percent.  New Canadian tariffs have popped these markets over the last week or two.  

4. 2x4 and 2x12 pine were flat while 2x6 added 1.3 percent.  The increase in Canadian lumber may have cemented a bottom for southern pine- we will see. 

5. Roof trusses were down 3.5 percent on lower-priced inventory that flowed through the system. 

6. Pocket frames added 2.2 percent due to increased board costs due to tariffs. 

7. 4x4 treated was down 6.7 percent, while 2x4 treated was flat. 

8. Shingles retreated 5.9 percent on awful demand, and drywall was down on average 5.0 percent as poor demand has forced capitulations on several levels of the supply chain. 

Thus far, expect an increase in mouldings next month as Brazil and South America are large providers in the United States, and it appears that there will be significant increases in nails and metal components as steel tariffs really begin to make an impact.  Plus, Florida is heading to the heart of hurricane season, and if the first hurricane of the year is any indication, it could be another rough year. 

The uncertainty remains for builders as the housing market continues to languish, and there is little cost stability in supply chains and labor.  Bid long-term projects with a price escalation clause and prepare your clients for delay, especially in Florida, which is seeing many jurisdictions struggle with permitting lead times.  

The RoMac Building Supply Whole House Commodity Index is based on wholesale costs of the base components to build a 2,200-square-foot wood frame home with a concrete stem wall in Central Florida. The Index includes foundation, metal, concrete, block, stucco, cement, wood framing, siding, sheathings, trusses, roofing, drywall, insulation, windows, doors, trim, garage doors, and most building hardware. It does not include décor, electrical, plumbing, mechanical, landscaping, or labor. Because the Index uses current wholesale costs, this should be a strong indicator of the direction of building prices for the next 30-45 days.

Don Magruder is the Chief Executive Officer of RoMac Building Supply in Central Florida.

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