April 28, 2026
Everyday drivers continue to grapple with gas prices hovering around $4 a gallon, but for the construction industry, the spike brought on by the Iran-related global energy crisis means more than giving up more dollars at the pump.
A recent report from the National Association of Home Builders indicated that energy input prices jumped at the highest rate since 2020, rising 21.4% in March. That’s 20.8% higher than one year ago. The monthly increase in March was the largest since prices rose 30.6% in June 2020.
In addition, building material prices, excluding energy, rose for the eleventh straight month. The price of goods used in new residential construction was up 1.8% over the month and up 4.3% from last year.
Price growth for trade services also continued to rise, but the rate of increase slowed. The price of services was up 0.3% over the month and up 3.1% from last year.
Meanwhile transportation and warehousing price growth accelerated. In addition to gas prices rising, the increase of diesel has added to the costs.
“Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 51.2% higher than a year ago,” the report stated.
The link between higher fuel prices and increased good costs doesn’t surprise. Skip Lilly, a Vision HR Inc. sales and marketing manager, told the Daytona Beach News-Journal earlier this month that rising fuel prices impact everything from delivery expenses to employee commuting.
"For small to mid-sized companies, especially those in transportation, construction, and service industries, fuel is not just a line item — it's a direct driver of operating costs," said Lilly, whose firm that provides payroll, human relations, employee benefits and commercial insurance services to businesses throughout Florida and 14 other states.
Lilly noted that energy costs ultimately put pressure on margins and pricing, and those costs can be passed on to consumers. In the housing industry, that’s yet to emerge across the nation and in Florida, with builders continuing to rely on incentives to stay successful.
However, builder sentiment has declined due to the economic uncertainty. The NAHB’s builder confidence market index for newly built single-family homes fell four points to 34 in April, the lowest mark since September 2025.
“The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio.