Increased labor costs are driving up prices for home remodeling, which outpaced inflation in the second quarter, according to the Associated Press.
A report from data analytics company Verisk found that the cost of home repair and remodeling projects is up compared to one year ago. Verisk’s latest Repair and Remodeling Index climbed 3.4% in the April-June quarter of 2025 compared to the same period last year — higher than the simultaneous 2.7% rise in inflation.
The index tracks costs for over 10,000 home improvement products.
Verisk noted that higher labor costs for repair and remodeling work seems to be the primary driver for the increase. The latest index puts costs for repair and remodeling at almost 62% higher than they were 10 years ago.
