Home >> Daily Dose >> Home Repair Expenses Steadily on the Rise
Print This Post Print This Post

Home Repair Expenses Steadily on the Rise

According to the Verisk Remodel Index, the cost of home repairs and remodeling in the third quarter of 2023 jumped by 6.6% nationally compared to a year earlier. 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.

“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%,” said Pyne. “Hopefully, as the rate of inflation continues to decline and supply chain disruptions are minimized, repair and remodeling cost increases will follow suit.”

All regions nationwide experienced cost increases both quarterly and annually. The Mid-Atlantic and Pacific Regions both saw costs rise by 1.9% compared to Q2. 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 10-year span covered by the Index, rising more than 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.

The Verisk Remodel Index tracks costs on 31 different categories of home repair, comprising more than 10,000-line items including appliances, doors, framing, plumbing, and 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 Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.