Verisk Report: US Reconstruction Cost Inflation Cools in Q2 2026
A new report from Verisk indicates that reconstruction cost inflation in the United States decelerated during the second quarter of 2026, providing some relief to insurers and businesses. The Q2 2026 360Value Quarterly Reconstruction Cost Analysis reveals that total reconstruction costs, encompassing materials and retail labor, increased by 3.6% year-over-year. This represents a significant slowdown from the 5.2% growth recorded in the same period the previous year. Quarter-over-quarter growth also moderated to 0.8%. Residential reconstruction costs rose by 3.2% nationally, while commercial costs increased by 4.1%. Although wholesale prices showed their highest annual increase in over three years, specific construction material costs like lumber, concrete, and roofing saw slight declines. However, skilled-trade wage growth, driven by infrastructure spending and limited contractor availability, continued to exert upward pressure on overall costs, with hourly billable labor costs rising 3.63% year-over-year. States such as Rhode Island, Oklahoma, Iowa, Indiana, and Kansas experienced steep cost increases, whereas Georgia and Louisiana noted notable slowdowns. This data offers critical insights for the insurance industry and broader economic stakeholders monitoring inflation trends in the construction sector.
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Verisk Report: US Reconstruction Cost Inflation Cools in Q2 2026
A new report from Verisk indicates that reconstruction cost inflation in the United States decelerated during the second quarter of 2026, providing some relief to insurers and businesses. The Q2 2026 360Value Quarterly Reconstruction Cost Analysis reveals that total reconstruction costs, encompassing materials and retail labor, increased by 3.6% year-over-year. This represents a significant slowdown from the 5.2% growth recorded in the same period the previous year. Quarter-over-quarter growth also moderated to 0.8%. Residential reconstruction costs rose by 3.2% nationally, while commercial costs increased by 4.1%. Although wholesale prices showed their highest annual increase in over three years, specific construction material costs like lumber, concrete, and roofing saw slight declines. However, skilled-trade wage growth, driven by infrastructure spending and limited contractor availability, continued to exert upward pressure on overall costs, with hourly billable labor costs rising 3.63% year-over-year. States such as Rhode Island, Oklahoma, Iowa, Indiana, and Kansas experienced steep cost increases, whereas Georgia and Louisiana noted notable slowdowns. This data offers critical insights for the insurance industry and broader economic stakeholders monitoring inflation trends in the construction sector.