December 2025 Whole House Commodity Report

By Don Magruder

The RoMac Building Supply Whole House Commodity Index (Index) for December 2025 declined for the second month in a row to $50,379 or 0.7 percent. Housing activity remains diminished by most accounts, as official government housing starts have not been reported since the shutdown. The Federal Reserve cut interest rates by 0.25 percentage points yesterday, but most predict this move will have little to no effect on mortgages, given that yields on U.S. Treasury bonds are above 4.80 percent.

With unemployment rising and employment seemingly decreasing, along with uncertainty in Washington, D.C., regarding tariffs, the chances of a quick turnaround in housing are diminishing.

Commodity pricing, for the most part, has declined over the last 30 days despite increased mill curtailments and shutdowns. However, over the past week, it appears the market is beginning to balance supply, as pricing has increased in the last few days. The risk for builders is the volatility that will accompany any improvement in housing, as inventories are woefully low and supply remains curtailed. Spring futures indicate commodity prices will be higher, and builders should be wary of bidding on spring projects at current pricing. Here are the notable price movers from the last 30 days:

1. 2x4 and 2x6 yellow pine were up a little more than 1.0 percent, while 2x12 yellow pine dropped 1.0 percent.

2. Spruce studs were down 6.8 percent, while 2x4 dimensional spruce dropped 4.8 percent, and 2x6 spruce was down 4.8 percent.

3. Roof trusses dropped 2.7 percent due to declines in pine costs and slower demand.

4. Treated 2x4s added 4.8 percent, while a 4x4 increased 6.2 percent.

5. House wrap declined 7.7 percent due to increased competition and slower demand.

The deportation of immigrants by the administration continues to pressure labor rates and reduce the availability of skilled workers. This is the main reason few predict any capitulation in labor costs for home construction.

Hopefully, the new year will bring different trends to bolster housing. We want to thank everyone who reads our monthly updates, and to you and yours, I hope you have a Merry Christmas and a most prosperous New Year.

The RoMac Building Supply Whole House Commodity Index is based on wholesale costs for the base components required 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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