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 July 2022 to July 2023.

Total reconstruction costs, including materials and retail labor, increased 4.3% from July 2022 to July 2023. This uptick follows the 3.1% increase from April 2022 to April 2023. Quarterly reconstruction costs increased by 1.0%. Costs continue to slow down and steady, with increases ranging close to pre-pandemic levels.

Combined costs for material composites decreased 1.6% from July 2022 to July 2023—a shift from the 4.2% decrease recorded from April 2022 to April 2023. Lumber composite costs declined consistently over the 15 months—the only negative composite this quarter at 28.9%. Meanwhile, interior trim and drywall continue to serve as key drivers at 14.2% and 10.4%, respectively. Combined hourly retail labor costs increased 8.6% from July 2022 to July 2023, on par with the 8.6% increase from April 2022 to April 2023. Concrete mason costs increased at 11.5%, the highest of the labor categories.

Reconstruction costs–at the state level

Residential costs increased 3.1% from July 2022 to July 2023 and 0.8% from April 2023 to July 2023. Florida had the largest increase at 7.8%, followed by Utah (6.1%) and Rhode Island (6.0%).

Commercial costs, in total, increased 5.6% from July 2022 to July 2023 and 1.2% from April 2023 to July 2023. Utah had the largest increase at 10.1%, followed by Florida at 9.9%.

Impacts of Canadian Wildfires

Recent Canadian wildfires may soon influence reconstruction costs as lumber production and access experiences impact. The United States generates between 60 to 70 percent of its softwood lumber domestically and imports the rest. The vast majority of those imports come from Canadian suppliers. Rising lumber prices could have a major impact on reconstruction costs many months after the fires ultimately subside.

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

Trish Hopkinson: Trish Hopkinson is Head of 360Value for Verisk.

Joel Teemant: Joel Teemant is product director, 360Value commercial lines, for Verisk..