Reconstruction Costs Show Moderate Shifts

July 31, 2026 / 2 min read

reconstruction 2025 (2)

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 2025 to July 2026.

Total reconstruction costs in the United States, including materials and retail labor, increased by 4.0% from July 2025 to July 2026, down slightly from July 2024 to July 2025 (4.2%). Cost growth in Q2 2026 was up from the previous quarter at 1.2%.

Residential reconstruction costs

Total residential costs increased by 3.8% from July 2025 to July 2026 and 1.29% from April 2026 to July 2026. Residential reconstruction costs increased year over year in all states.

Kansas had the largest increase at 5.33%, followed by Michigan at 5.15% and Oklahoma at 5.11%. New Hampshire’s rank rose most significantly, from 51st in April 2026 to 28th in July 2026; costs were up 3.61% year over year in the state.

Commercial reconstruction costs

Total commercial reconstruction costs increased 4.1% from July 2025 to July 2026 and 1.08% from April 2026 to July 2026.

Rhode Island again had the largest increase at 6.85%. Oklahoma and Iowa also repeated their second- and third-place rankings from Q2 2026 with increases of 6.57% and 5.79%, respectively. Arkansas had the largest rank jump, from 46th to 30th.

Labor and materials

Material costs rose by 2.05% from July 2025 to July 2026. These costs increased 0.18% over the quarter. Material prices remained largely stable this quarter, with modest movement across all eight tracked composites. The overall range of change was narrow, spanning from a slight decline of roughly -0.04% to a small gain of 0.99%. Concrete composite saw the largest increase at +0.99%, followed by roofing composite (+0.43%) and paint composite (+0.16%). Lumber (-0.04%) posted the only decline, while carpet and metal roofing were unchanged.

Combined hourly billable labor costs increased by 4.69% from July 2025 to July 2026. The quarterly change was 1.4% compared with last quarter’s 0.95% increase. Concrete mason led all trades with the highest increase at +4.28%. Labor rates increased across all eight tracked trades this quarter.

Market expectations

Market expectations for residential reconstruction costs anticipate a 1.79% increase from July 2026 to January 2027.

360Value delivers forward-facing insights every quarter via CSV download. Get 3-, 6-, and 12-month future indexes for residential structures based on regional reconstruction costs down to individual ZIP codes.

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

Read the report