Quarterly Reconstruction Cost Growth Rate Remains Modest for Now

April 30, 2025 / 3 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 April 2024 to April 2025.

reconstruction 2025

Total reconstruction costs in the United States, including materials and retail labor, increased by 5.2% from April 2024 to April 2025, up from April 2023 to April 2024 (4.6%). Cost growth in Q1 2025 was virtually unchanged at 1.1% compared with 1.0% in the previous quarter.

This quarter saw noticeable impacts from the Palisades and Eaton fires. While California reconstruction costs were up 1.67% on average, the Los Angeles region saw a 4.24% increase, largely incurred in the past two months with rises of 1.06% from February to March and 3.15% from March to April.

Verisk will continue to monitor cost changes in the aftermath of the January fires in Southern California and the potential impacts of recent U.S. import tariffs, especially on four key construction materials—lumber, concrete, drywall, and roofing. Possible short-term impacts of the new tariffs include volatile pricing, especially where import dependency is high, and supply-chain disruptions.

State changes for reconstruction costs

Total residential costs increased by 4.7% from April 2024 to April 2025 and 1.1% from January 2025 to April 2025. Residential reconstruction costs increased year over year in all states.

Kansas had the largest increase for the second consecutive quarter at 6.95%, followed by Oregon (6.81%) and Georgia (6.53%). Louisiana’s rank rose most significantly, from 45th in January 2025 to 24th in April 2025; costs were up 4.50% in the state year-over-year.

Residental reconstruction q2 2025

Commercial reconstruction costs

Total commercial reconstruction costs increased 5.7% from April 2024 to April 2025 and 1.2% from January 2025 to April 2025.

Rhode Island again had the largest increase at 11.04%. Maine and Kansas followed with increases of 8.89% and 8.37%, respectively. As with residential costs, Louisiana had the most significant rank jump—from 46th to 13th—with an increase of 6.87%.

commercial reconstruction costs q2 2025

Labor and materials

Material costs rose 2.42% from April 2024 to April 2025—down slightly from the 2.6% increase from January 2024 to January 2025. The increasing month-to-month trend was consistent through most of 2024, except for a slight drop from November to December. A 0.43 increase—the largest in the 12 months—followed from December 2024 to January 2025. Concrete material again had the largest quarterly (1.19%) and yearly (9.3%) increases in the United States, followed by roofing material, which increased 2.8% over the past 12 months and 0.50% over the past quarter.

Combined hourly retail labor costs increased by 5.6% from April 2024 to April 2025, up slightly from their 5.3% increase from January 2024 to January 2025. Concrete masons again had the most significant quarterly change in the United States. No labor categories showed a decrease over the past year or quarter.

Market expectations

Market expectations for reconstruction costs anticipate a 2.60% increase for residential and 2.32% for commercial from April 2025 to October 2025.

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.

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