COST OF HOME REPAIRS INCREASES BY 6.6% FROM Q3 2022
Prices rise nationally by more than 64% over the past decade
The cost of home repairs and remodeling in the third quarter of 2023 jumped by 6.6% nationally compared to a year earlier according to the new Verisk Remodel Index. Costs rose 1.7% from the second quarter of 2023 and are at the highest levels in the past decade, rising over 64% from the first quarter of 2013.
The Verisk Remodel Index tracks costs on 31 different categories of home repair, comprising over 10,000 line items ranging from appliances to windows. Data are compiled monthly in over 430 local market areas across the country.
“Much like the price of homes and the cost of financing, we’ve seen repair costs rise significantly over the past year,” said Greg Pyne, VP, Pricing for Verisk Property Estimating Solutions. “The costs of products and materials used in home repairs jumped after the COVID-19 pandemic, and haven’t slowed down much after that initial burst in 2021.”
Costs rose in all 31 categories both quarterly and annually. The cost of doors rose the most compared to the prior quarter, going up by 16.6% compared to the second quarter, and 17.7% compared to the prior year. The cost of tile rose by 7.3% quarterly, and had the highest annual increase, with prices soaring by 27%. Framing, which accounts for over 6% of repair and remodel costs, was up 2.2% from the prior quarter, but down 1% year-over-year, and down about 13% from its high point in the index in the second quarter of 2021.
“At a 6.6% annual rate of increase, repair and remodeling costs are outpacing inflation, which is currently running at about 3.2%,” added Pyne. “Hopefully, as the rate of inflation continues to decline and supply chain disruptions are minimized, repair and remodeling cost increases will follow suit.”
Pacific and Mid-Atlantic Regions Show Highest Quarterly Increases; Mountain and New England Regions Have Highest Annual Gains
All regions experienced cost increases both quarterly and annually. The Mid-Atlantic and Pacific Regions both saw costs rise by 1.9% compared to the second quarter. The Mountain Region (7.4%) and New England Region (7.1%) had the highest rate of annual cost increases. The Mountain Region has also had the highest overall cost increases over the ten-year span covered by the index, rising over 69 points since the beginning of 2013. The West South Central Region had the lowest quarterly (1.4%) and annual (6.2%) cost increases, and has risen the least (58.5 points) since the beginning of the tracking period.
| Q2-Q3 | Q3 2022-Q3 2023 | |
| East North Central | 1.5% | 6.5% |
| East South Central | 1.6% | 6.4% |
| Mid-Atlantic | 1.9% | 6.6% |
| Mountain | 1.8% | 7.4% |
| New England | 1.5% | 7.1% |
| Pacific | 1.9% | 6.4% |
| South Atlantic | 1.5% | 6.4% |
| West North Central | 1.7% | 6.3% |
| West South Central | 1.4% | 6.2% |
Methodology
The Verisk Remodel Index tracks costs on 31 different categories of home repair, comprising over 10,000-line items including appliances, doors, framing, plumbing, windows. Prices are compiled and updated monthly in over 430 local market areas across the country. The index cost basis is January 2013, and the report is updated quarterly.
About Verisk
Verisk is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, ESG and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. Verisk is traded on the Nasdaq exchange and is a part of the S&P 500 Index and the Nasdaq-100 Index. For more information, please visit www.verisk.com.
Contact: Rick Sharga
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