February 2025 Whole House Commodity Report

By Don Magruder

The RoMac Building Supply Whole House Commodity Index (Index) for February 2025 increased 1.0 percent to $51,353 as mills and manufacturers try to digest the new trade and tariff policies of the new administration and balance them with a housing market that remains unimpressive in demand. While December housing starts increased 15.8 percent over the November number, housing starts were 4.4 percent below the prior year.  30-year mortgage rates remain stubbornly high at 6.9 percent with little help from the Federal Reserve due to hotter inflation data. Most importantly, home prices have not dropped notably in many areas even though home inventories continue to increase in many markets. 

As compared to last February’s number, the Index is .6 percent more, but many manufacturers have delayed normal first-of-the-year price increases because of the uncertainty in markets. I anticipate March will really start the new year's pricing for many companies.  

Here are the price movers on this month’s Index.

1. Foundation steel rebar increased by 3.3 percent while wire mesh added 2.2 percent, and this does not have any impact on last Monday’s 25 percent tariff on steel.  This was primarily driven by tighter supply.

2. CDX pine increased 13.0 percent and OSB sheathing was up 2.7 percent as the supply chains tightened.

3. Spruce 2x4s added 4.2 percent while 2x6 spruce dropped 6.4 percent, and studs were basically flat with a .8 percent drop.

4. 2x4 pine was up .9 percent while 2x12 pine dropped 10.5 percent and 2x6 eased down 3.9 percent.  Demand is driving these numbers.

5. Truss Pricing was up 3.2 percent on higher specialty pine pricing and availability as well as increased labor costs. 

6. 4x4 treated posts added 3.7 percent.

7. Pocket frames added 2.2 percent on high spruce pricing. 

It appears as the weather warms and volume increases, and as mills and manufacturers figure out the new tariff environment, this month could be the first of several increases.  This last week, dealers have begun receiving notification letters of increases for everything from steel to aluminum connectors to drywall and shingles.  March could usher in a significant wave of price increases that builders should be aware of as they bid on projects for the upcoming spring and summer building times.  

As I talk to mills and manufacturers across the country, the most common response is “I don’t know.” It is very difficult to price any project with “I don’t know” pricing, and most home buyers and remodel customers are not open to adjusting contract pricing on upcoming projects. This is the time builders should have a price escalation clause in all contracts because there is little chance that “I don’t know” pricing is going to settle any time soon. 

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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