June 2025 Whole House Commodity Report

By Don Magruder

The RoMac Building Supply Whole House Commodity Index (Index) for May 2025 decreased .8 percent to $52,324 wiping away last month’s gains and represents the first down price in almost 6 months.  New housing starts remain anemic at less than 1.4 million and stubbornly high mortgage rates along with tariff concerns have subdued buyer enthusiasm. Based on the declines in the wood commodity markets, housing demand continues to disappoint. 

Below are the notable price movers over the last 30 days.

1. Rebar dropped 2.5 percent for the month but is poised to increase with newly announced steel tariffs of 50 percent.

2. Spruce was mixed.  2x4-16 spruce added 4.0 percent, but studs were down 6.8 percent, and 2x6 spruce dropped .5 percent.

3. The pricing for dimensional pine was down across the board as the housing demand equation diminished sales and the spring decking season faded.  2x4 was down 18.0 percent, 2x6 was down 15.9 percent, and 2x12 dropped 8.8 percent.  It was a tough month for pine pricing.

4. CDX pine was down .6 percent, but the pricing bloodbath continued in OSB sheathing dropping to 5-year lows with a 16.3 percent decline.  The OSB pricing in my view is the best indicator of how bad the housing demand is weighing on the markets.

5. Treated 2x4 pine was down 15.7 percent, and 4x4 treated was off 9.6 percent as the decking season faded. 

6. Metal strapping was up 5 percent across the board on increased tariffs. 

7. Mouldings surged 10.5 percent to 33.3 percent on higher tariffs and subdued availability. 

8. Garage Doors added 6.1 percent due to higher steel tariffs. 

9. Interior doors were up 2.1 percent on higher moulding costs. 
   

The increases in items affected by tariffs offset many of the declines in the wood commodities.  The indication from many suppliers is that inventories of commodities are low at ground level and will be subject to more volatility in the future. 

Housing continues to face major headwinds.  Immigration enforcement threatens to slow projects, tariffs continue to be a threat to pricing, and the war in the Middle East threatens to add gasoline to an inflation picture which remains unstable with much higher energy costs and stubbornly high interest rates. The news in the summer for housing has yet to turn around, and this will leave many builders questioning future costs.  

Builders need to cost carefully future projects, and a price escalation clause is essential for any contract.  Expect volatility as the many of the commodity prices are hovering around year lows and mills will soon have to make decisions on curtailments. 

The ride for builders and suppliers does not appear to be getting any better, so hold on. 

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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