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Total reconstruction costs in the U.S. rose by 5.2% from July 2023 to July 2024.

That’s a large increase from the cost growth from July 2022 to July 2023 (4.0%) and over the cost growth in the second quarter (1.6%), which Verisk released in its , which provides reconstruction cost trends at the national and state levels.

The total reconstruction costs include materials and retail labor.

The analysis shows total residential costs increased 4.9% from July 2023 to July 2024 and 1.4% from April 2024 to July 2024.

Residential reconstruction costs increased year over year in all states.

New Hampshire had the largest increase (9.59%), followed by Colorado (9.05%) and Nebraska (6.37%). Nevada went from having the lowest cost increase in April 2024 to the 12th-highest in July 2024, with costs up 5.58% in the state year-over-year. South Dakota and North Dakota rose to 5^th and 14th highest. Vermont had the largest drop, going from 8th to 36th place with a residential cost increase of 4.13%. Wisconsin went from 30th to 50th place with a cost increase of 3.54% and Michigan dropped from 14th to 33rd with a 4.19% increase, the report shows.

Other report highlights include:

• Total commercial reconstruction costs increased 5.5% from July 2023 to July 2024 and 1.8% from April 2024 to July 2024. Commercial reconstruction costs increased by at least 3.42% in all states.
• Material costs rose by 4.35% from July 2023 to July 2024. Material cost increases are accelerating compared to 2023: growth from January 2024 to July 2024 has already surpassed the total growth for 2023, increasing 1.75% compared to 2023’s total of 1.20%. If this trend continues, material costs will have an increase of 3% in the U.S. for 2024, more than double 2023’s growth.
• Combined hourly retail labor costs increased by 4.3% from July 2023 to July 2024, a drop from their 6.2% increase from January 2023 to January 2024.
• For the first time in years, materials costs rose more than labor costs: 4.35% for materials vs. 4.31% for labor.

Topics USA