Verisk recently released its latest 360Value® Quarterly Reconstruction Cost Analysis, which offers an overview of current reconstruction cost trends at the national and state levels for the United States from April 2022 to April 2023.
Reconstruction cost increases have started to slow down and steady, showing a decrease for the last 12 months.
Total reconstruction costs, including materials and retail labor, increased 3.1% from April 2022 to April 2023. This drop follows the 6.8% increase from January 2022 to January 2023. Cost increases continue to slow down and steady.
State changes for reconstruction costs
Residential costs in total increased 1.1% from April 2022 to April 2023 and 0.8% from January 2023 to April 2023. Florida had the largest increase at 6.8%, followed by Utah (4.2%) and New Mexico (4.0%). California’s rank changed most significantly, rising from the 33rd-highest cost increase in January 2023 to the seventh-highest in April 2023; costs were up 2.4% in the state.
Commercial costs in total increased 5.1% from April 2022 to April 2023 and 2.0% from January 2023 to April 2023. Every state saw higher commercial reconstruction costs. Utah had the largest increase at 9.6%, followed by Florida (9.0%) and New Mexico (7.7%).
Slowing down and steadying
Reconstruction cost increases have started to slow down and steady, showing a decrease for the last 12 months. Lumber continued to serve as the only compositive in the negative this quarter, at 37.3%.
Interior trim increased the most, rising 18.9% This is led by the costs of interior doors and crown molding. Drywall and roofing composites followed behind at 13.7% and 12.0%, respectively.
Labor costs have remained on a steady incline for the last few years. Concrete mason was a key driver for labor, increasing at 11.4%, the highest of the labor categories.
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Tracing Canada costs
Verisk acquired Opta, Canada’s leading provider of property intelligence and innovative technology solutions. Opta is monitoring reconstruction cost changes for the Canadian market.