Home repair and remodeling costs are climbing faster than inflation, according to Verisk’s latest Repair and Remodeling Index, which showed a 3.4% annual increase in the April–June quarter compared to a 2.7% rise in consumer prices overall. The index, which tracks more than 10,000 products, also rose 0.6% from the prior quarter. Much of the increase is being driven by higher labor costs, with the most labor-intensive projects, such as tile replacement and bathroom remodels, seeing the steepest quarterly gains. While tariffs on imported goods were expected to push costs higher, their delayed implementation muted their effect in the second quarter. However, new tariffs announced by the Trump administration—including a 50% import tax on kitchen cabinets and bathroom vanities- are likely to impact homeowners soon.
Overall, remodeling costs are now nearly 62% higher than a decade ago and 73% higher than when the index debuted in 2013. After two years of decline, homeowner spending on maintenance and renovations rebounded in the first half of 2025, with Harvard’s Joint Center for Housing Studies estimating $510 billion spent in the second quarter, up 1.8% from last year. Still, researchers expect growth to slow in 2026 amid a weak housing market and sluggish new home construction. The housing downturn, triggered by rising mortgage rates since 2022, has left home sales at their lowest point in nearly 30 years, further dampening outlooks for the renovation industry.
