Rising construction materials are pushing homeownership beyond reach for more Americans. Typical homes use more than 400 pounds of copper, with prices hitting records due to data-center demand and mine disruptions. Lumber costs are climbing from import taxes and sawmill closures, while the Iran war has choked off 20% of global oil supply.

The surge in building materials is contributing to broader inflation that has pushed financing costs higher. A global bond rout has lifted borrowing costs, bringing the average 30-year fixed mortgage rate to 6.51%, the highest level since August. Wallboard, cement, and plastics costs are also climbing due to fuel price volatility.

These cost pressures will likely weigh on construction activity over the coming months. Input prices have risen more during the first four months of 2026 than over the prior three years, according to Anirban Basu, chief economist at Associated Builders and Contractors.