Quarterly Reconstruction Cost Growth Cools

July 29, 2025 / 2 min read

The latest 360Value® Quarterly Reconstruction Cost Analysis report gives an overview of current reconstruction cost trends at the national and state levels for the United States from July 2024 to July 2025.

Total reconstruction costs in the United States, including materials and retail labor, increased by 4.2% from July 2024 to July 2025, down from July 2023 to July 2024 (5.2%). Cost growth in Q2 2025 dipped to 0.7% from 1.1% in the previous quarter.

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State changes for reconstruction costs

Residential reconstruction costs

Total residential costs increased by 4.07% from July 2024 to July 2025 and 0.7% from April 2025 to July 2025. Residential reconstruction costs increased year over year in all states.

Kansas had the largest increase for the third consecutive quarter at 6.62%, followed by Minnesota and Georgia, both at 5.79%. The District of Columbia’s rank rose most significantly, from 22nd in April 2025 to fourth in July 2025; costs were up 5.78% in the district year-over-year.

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Commercial reconstruction costs

Total commercial reconstruction costs increased 4.4% from July 2024 to July 2025 and 0.6% from April 2025 to July 2025.

Maine had the largest increase at 8.56%. Kansas and Minnesota followed with increases of 7.76% and 6.74%, respectively. As with residential costs, the District of Columbia had the most significant rank jump—from 44th to 14th—with an increase of 5.05%.

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Labor and materials

Material costs rose by 2.81% from July 2024 to July 2025. The largest monthly increase in the second quarter was 0.85%, occurring in June 2025 and largely the result of an increase in the cost of condenser units and heating/AC registers. Concrete material had the largest yearly increase at 4.74%. Over the past quarter, interior trim material increased the most at 2.78%. Carpet in the US was the only material to remain flat. Lumber material costs also remained relatively stable, increasing just 0.22%.

Combined hourly billable labor costs increased by 5.03% from July 2024 to July 2025. The quarterly change was 0.82% compared with last quarter’s 1.06% increase. Tile/cultured marble installers had the largest quarterly change, increasing 2.49%. The cost of roofers decreased 0.28%, the only trade to show a drop and the first decline for roofers since June 2014.

Market expectations

Market expectations for reconstruction costs anticipate a 2.02% increase for residential and 2.04% for commercial from July 2025 to January 2026.

Verisk’s Market Expectations Index delivers forward-facing insights every quarter via CSV download. Get 3-, 6-, and 12-month future indexes for residential and commercial structures based on regional reconstruction costs down to individual ZIP codes. To learn more about the Market Expectations Index, contact Trish Hopkinson, head of 360Value, at trish.hopkinson@verisk.com.

Read the latest 360Value Quarterly Reconstruction Cost Analysis for more information on this quarter’s performance.

Read the report