Reconstruction costs continue easing trend

February 19, 2026 / 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 January 2025 to January 2026.

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Total reconstruction costs in the United States, including materials and retail labor, increased by 3.8% from January 2025 to January 2026, down from January 2024 to January 2025 (5.0%). Cost growth in Q4 2025 was unchanged from the previous quarter at 1.0%.

State changes for reconstruction costs

Residential reconstruction costs

Total residential costs increased by 3.5% from January 2025 to January 2026 and 0.9% from October 2025 to January 2026. Residential reconstruction costs increased year over year in all states.

The District of Columbia had the largest increase at 5.82%, followed by Oregon at 4.96% and Indiana at 4.84%. Arizona’s rank rose most significantly, from 30th in October 2025 to 11th in January 2026; costs were up 4.26% year over year in the state.

Commercial reconstruction costs

Total commercial reconstruction costs increased 4.1% from January 2025 to January 2026 and 1.1% from October 2025 to January 2026.

Louisiana had the largest increase at 6.17%. Oklahoma and Missouri followed with increases of 5.98% and 5.64%, respectively. Virginia had the most significant rank jump—from 49th to 31st.

Labor and materials

Material costs rose by 3.26% from January 2025 to January 2026. Material costs increased 1.49% over the quarter. January was the only month with an increase in material costs this quarter, at 1.61%. Interior trim material had the largest yearly increase, up 4.9% in the past 12 months. Over the past quarter, paint material increased the most in the United States, by 0.96%; it also showed the largest increase in the last release of this report. Lumber material had the largest decrease over the quarter, down 0.86%. Roofing was the only other material to decrease over the quarter, falling 0.12%.

Combined hourly billable labor costs increased by 4. 21% from January 2025 to January 2026. The quarterly change was 1.14% compared with last quarter’s 1.12% increase. Concrete masons again had the largest quarterly change, increasing 5.26%. No trades had a decrease in costs for the most recent quarter.

Market expectations

Market expectations for reconstruction costs anticipate a 1.86% increase for residential and 1.27% for commercial from January 2026 to July 2026.

360Value 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 for more information on this quarter’s performance.

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

Read the report

Reconstruction Cost Trends Stay Flat

State changes for reconstruction costs

Labor and materials

Market expectations