Reconstruction Costs Continue Easing Trend

October 24, 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 October 2024 to October 2025.

construction house

Total reconstruction costs in the United States, including materials and retail labor, increased by 3.8% from October 2024 to October 2025, down from October 2023 to October 2024 (4.9%). Cost growth in Q3 2025 increased to 1.0% from 0.7% in the previous quarter.

State changes for reconstruction costs

Residential reconstruction costs

Total residential costs increased by 3.5% from October 2024 to October 2025 and 0.8% from July 2025 to October 2025. Residential reconstruction costs increased year over year in all states.

Georgia had the largest increase at 5.63%, followed by the District of Columbia at 4.70% and Indiana at 4.56%. Alaska’s rank rose most significantly, from 50th in July 2025 to 18th in October 2025; costs were up 3.83% in the state year-over-year.

residental reconstruction costs v1

Commercial reconstruction costs

Total commercial reconstruction costs increased 4.0% from October 2024 to October 2025 and 1.1% from July 2025 to October 2025.

As with residential costs, Georgia had the largest increase at 6.69%. Maine and Oklahoma followed with increases of 6.52% and 6.21%, respectively. Oklahoma had the most significant rank jump—from 42nd to third.

Commercial reconstruction costs 2025 v1

Labor and materials

Material costs rose by 2.19% from October 2024 to October 2025. Material costs decreased -0.17% over the quarter. July was the only month to have an increase in material costs this quarter at 0.01%. Interior trim material had the largest yearly increase, up 4.0% in the last 12 months. Over the past quarter, paint material increased the most in the United States at 1.02%. Roofing material had the smallest increase over the quarter, rising 0.06%. Lumber material was the only common material that decreased over the quarter.

Combined hourly billable labor costs increased by 4.49% from October 2024 to October 2025. The quarterly change was 1.12% compared with last quarter’s 0.82% increase. Concrete masons had the largest quarterly change, increasing 5.56%—almost double the growth from the preceding nine months. Unlike the previous quarter, no trades had a decrease in costs for the most recent quarter.

Market expectations

Market expectations for reconstruction costs anticipate a 1.68% increase for residential and 1.87% for commercial from October 2025 to April 2026.

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