The Q4 2025 Verisk Repair & Remodel Cost Index looks at the costs of 31 different categories of home repair, covering over 10,000-line items ranging from appliances to windows. Data are compiled monthly in over 430 local market areas across the country, and available through the company’s industry-leading remodeling and repair estimating products, XactRemodel® and XactPRM®.
A few highlights:
- Repair costs rose by 2.71% from Q4 2024, an almost identical pace as the CPI – the first time repair costs were at or below the rate of inflation since 2016
- Even with this slower rate of increase, repair and remodeling costs have risen by over 65% in the last decade
- Higher costs appear to be driven largely by labor costs, which continue to account for about 64% of overall repair and remodel budgets; many of the most labor-intense jobs had the highest rate of cost increases in the report
- Vermont, Oregon, and Washington, DC had the highest quarterly cost increases
The cost of home repairs and remodeling rose by 2.71% in 2025, the lowest annual increase since 2018, according to the Q4 2025 Verisk Repair & Remodel Index. Even so, costs set new highs for the past decade, rising 67% from the fourth quarter of 2015 and more than 75% since the inception of the index in the first quarter of 2013.
The annual increase in repair and remodeling costs in 2025 was lower than the average annual increase of 2.83% from 2013 through 2019. Price increases jumped to 6.22% in 2020 and then nearly doubled to 12.44% in 2021 due to supply chain disruptions and labor shortages during the COVID-19 pandemic, before gradually returning to more normal levels over the following 4 years. On a quarterly basis, costs rose by just 0.47% in the fourth quarter of 2025, down from the prior quarter’s increase of 0.72%.
The Verisk Remodel Index tracks the costs of 31 different categories of home repair, covering over 10,000 line items ranging from appliances to windows. Data are compiled monthly in over 430 local market areas across the country, and available through the company’s industry-leading remodeling and repair estimating products, XactRemodel® and XactPRM®.
Repair and remodeling cost increases were identical to the rate of inflation during the fourth quarter of 2025, as the Consumer Price Index also rose by 2.7% during the same period, according to the Bureau of Labor Statistics. “2025 was the fourth year in a row that the rate of home repair and remodeling cost increases declined from the previous year, and the first time since 2016 that costs rose at or below the rate of inflation,” said Greg Pyne, VP, Pricing for Verisk Property Estimating Solutions. “Since the inception of the Verisk Repair and Remodel Cost Index in 2013, annual cost increases have been higher than the Consumer Price Index in 11 of the 13 years we’ve tracked, so it will be interesting to see if the lower rate of cost increases continues through 2026, or is a one-time blip like we saw in 2016.”
Quarterly price increases appear to be driven primarily by labor: The percentage of labor costs for repair and remodeling work continued to account for over 64% of the overall budget. And 5 of the 6 categories that had the highest quarterly price increases were also among those that were most labor-intensive.
The only other job category with at least a 1% quarterly cost increase from the previous quarter, Family/Living Room Addition – Slab on Grade, was an outlier in terms of its material and labor cost mix. Costs went up by 0.95%, but labor only accounted for 51.1% of the total job. Two of the 20 analyzed categories saw prices decrease from the prior quarter, and both were painting jobs of some sort: Priming and Painting Home Exteriors, which saw prices dip by 0.34% and Sealing, Priming, and Painting the Home Interior, which decreased by 0.21%. The other 12 categories of repair and remodeling work all saw costs increase modestly, between 0.14% and 0.43% from Q3 2025.
West North Central, Pacific, East North Central, and Mountain States have highest annual cost increases
Four regions—the West North Central (3.22%), Pacific (2.94%), East North Central (2.94%), and Mountain (2.84%) states all had annual costs increases higher than the national numbers. The South Atlantic (2.23%) had the lowest increase, a reversal from last quarter, when it had the highest annual increase—another indication that repair and remodeling costs in the region are returning to more normal levels after the devastation caused by Hurricanes Helene and Milton. The other 4 regions of the country all saw costs increase annually at rates below the national rate: West South Central (2.6%), Middle Atlantic (2.56%), New England (2.54%), and East South Central (2.53%).
On the other hand, on a quarter-over-quarter basis, costs rose most quickly in the West North Central states, increasing by 0.58%. Four other regions also saw costs increase more significantly than the 0.47% hike in national numbers: The Pacific had an increase of 0.57%, the Mountain 0.53%, the East North Central 0.5%, and the Middle Atlantic 0.49% region had the lowest cost increase in the country at 0.63%. New England had the lowest quarterly cost increase at 0.3% after recording the highest quarterly increase in Q3 at 0.88%.
All regions once again experienced cost increases both quarterly and annually. Quarterly increases ranged from a low of 0.63% in the South Atlantic region to 0.88% in the New England region, which had the lowest quarterly increase during the previous quarter. The Middle Atlantic States had the lowest annual increase at 2.67%, just below the 2.85% increase in the West South Central region— the second consecutive quarter that these two regions had the lowest annual rate of increase. The rest of the regions fell between annual growth rates of 2.95% (Mountain) and 3.20% (West North Central).
Vermont, Oregon, and District of Columbia have highest quarterly increases
Costs rose by 1.85% in the fourth quarter of 2025 in Vermont, the highest increase in the country, and almost four times as high as the national average. Oregon (1.18%) and the District of Colombia (1.17%) were the only two other locations with more than a one percent quarterly increase. Forty-eight of the 50 states, along with Washington, DC, had a quarter-over-quarter cost increase, but both New Hampshire (-0.85%) and Rhode Island (-0.26%) saw prices fall slightly from the previous quarter.
Download the full report HERE.
