The construction sector is going through a difficult time. Between 2020 and 2022, building or renovating a home has been more expensive than ever due to the inflationary escalation of materials such as aluminum or wood. The reactivation of the sector after the pandemic has been largely conditioned by the high demand from the heavy industries in charge of its production and the outbreak of the war in Ukraine, which has ended up making this type of material more expensive by 26.7% with compared to 2019, according to data from the Ministry of Transport, Mobility and Urban Agenda.
Metals have traditionally been a haven value for investors, which, however, has been weighed down by the slowdown in demand from China. The end of the restrictions due to the ‘covid zero’ policy of the Asian country has meant a ball of oxygen for the commodity markets, although according to a study by CaixaBank, its price will not stabilize until well into 2024.
If in recent years, you have made a reform in your home, surely the suppliers have updated your budget with days of difference. The volatility of the price of construction materials has caused real headaches for the entire distribution chain of the sector, from manufacturers to final consumers. Now that you know the origin of inflation, and above all, if you still have a small work pending at home, what are the materials that have become more expensive?
Steel is present in the structures and coatings of most modern constructions. The steel companies are electro-intensive industries that have suffered more than the increase in production costs due to the price of energy. This material reached its maximum historical price in May 2022, when it was 84% ​​more expensive than before the pandemic. Despite having fallen almost 130 points in the stock markets in July, its price is still 60% more expensive today than in 2019.
The wood compounds are used to make formwork, beams, boards or any carpentry work. Pine, fir or oak conglomerates are today 27% more expensive than in pre-pandemic times and the price per square meter is around 40 euros.
Essential materials in any work, cement and concrete reached their maximum price in September of last year, being 19% and 23% more expensive than in 2019.
The cost of other materials such as iron, lead, tiles or PWC is also higher than ever. That is why, when purchasing construction materials, it is best to have cash and be able to store them to avoid budget disruptions. Fortunately, the prices of all these materials are currently already trending downward.
