How Increase in Cost of Construction Materials has an Impact on House Construction

How has House Construction cost been impacted due to the increase in the Cost of Construction materials?

The construction materials prices grow from time to time. The trend is both in developed and developing nations.

There are multiple queries based on the hike in construction material costs which will eventually lead to an increase in house construction cost, and there could be many reasons. Here are some of the issues, which feel responsible for a hike in construction material costs.

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  • Let’s discuss a point not directly related to the industry, and it is skyrocketing fuel prices. It leads to an increase in transportation costs, and automatically the price of the materials increase.
  • A tariff increase of essential building materials such as steel and aluminum also leads to higher building material costs.
  • In the process, some scenarios are explored or came across scenarios where a shortage of skilled artisans leads to increased construction material costs. The manufacturer may have to pay overtime to the available labour, and that pushes up the costs.

Some factors are noted responsible for a hike in construction material, and I would like to offer updates on how individual materials price fluctuations can impact house construction.

It’s also suggested to Hire professional Architects who can help you plan your construction cost BOQ’s well in advance.


Let’s discuss the impact of steel price fluctuations on the house construction industry. This is one of the most common materials used in the construction sector, and roughly 16% of the material used in building construction is steel.

Hence, we feel that a price increase in the range of 10,000 to 20,000 per ton should substantially increase home construction costs. But, of course, a steel price rise also impacts other industries, but it can be discussed later.


It is noteworthy to mention the price hike in cement, which could impact house construction. An 8 to 9% hike in cement prices will undoubtedly push up the construction costs significantly.

In past scenarios of cement and steel price hikes of such percentages as discussed above, house construction costs could escalate anywhere in the range of 10 to 15%.

Some other materials where price fluctuations could impact the industry:

Steel and Cement price hikes impact the prices of homes significantly, and the end buyer has to shell out more cash for the house buy.

However, these are not the only two materials used in home construction, and the list includes more. Here are some of the other materials necessary for home construction.

  1. Softwood lumber/Wood is an important material used in constructing homes, and a price hike for this material can significantly impact the house construction budget.
  2. OSB refers to the oriented standard board, which is another key ingredient used in the home construction process.
  3. This sector needs gypsum products ranging from plaster to plasterboard. Once again, a hike in these will shoot up the home construction budget.
  4. Use of Ready-mix concrete RMC in areas such as the driveway and a hike for this material will once again shoot up home construction costs.

Through this article, the various aspects and insights look for much detail on how a hike in construction material prices impacts the construction budget for homes.

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