Total reconstruction costs in the United States increased by 5.2% from July 2023 to July 2024.

This is a large increase from the cost growth from July 2022 to July 2023 (4.0%) and from the second quarter cost growth (1.6%) that Verisk disclosed in its third quarter 360Value quarterly reconstruction analysis, which provides reconstruction cost trends at the national and state levels.

The total conversion costs include material and labor costs.

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

Home reconstruction costs have increased year-over-year in all states.

New Hampshire saw the largest increase (9.59%), followed by Colorado (9.05%) and Nebraska (6.37%). Nevada saw the lowest increase in costs in April 2024 and ranked 12th in July 2024, with costs in the state increasing 5.58% year-over-year. South Dakota and North Dakota increased to 5^th and 14th highest. Vermont had the biggest decline, falling from 8th to 36th with a 4.13% increase in housing costs. Wisconsin fell from 30th to 50th with a 3.54% increase in costs, and Michigan fell from 14th to 33rd with a 4.19% increase, the report shows.

Other highlights of the report include:

• Total commercial reconstruction costs increased 5.5% from July 2023 to July 2024 and 1.8% from April 2024 to July 2024. In all states, commercial reconstruction costs increased by at least 3.42%.
• Material costs increased 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 exceeded the overall growth for 2023, amounting to 1.75% compared to 1.20% in 2023. If this trend continues, material costs in the US will increase by 3% in 2024, more than double the increase in 2023.
• Combined hourly retail labor costs increased 4.3% from July 2023 to July 2024, a decrease from the 6.2% increase between January 2023 and January 2024.
• For the first time in years, material costs rose more than labor costs: 4.35% for materials versus 4.31% for labor costs.