By Trish Hopkinson, Joel Teemant
The latest 360Value Quarterly Reconstruction Cost Analysis provides an overview of national and state reconstruction cost trends in the United States from October 2025 to October 2026.
Total reconstruction costs, including materials and retail labor, increased 3.9% from October 2025 to October 2026, up slightly from October 2024 to October 2025 (3.8%). Cost growth slowed to 0.9% in Q3 2026.
Fuel price volatility
Fuel prices remained below their spring peak but continued to fluctuate during the quarter. These changes can affect construction markets through equipment operation, transportation, contractor travel, debris hauling, and other supply-chain expenses, particularly in remote markets and on projects requiring long-haul deliveries.
Residential reconstruction costs
Residential reconstruction costs increased 4.05% from October 2025 to October 2026 and 1.03% from July 2026 to October 2026, with annual increases in every state.
Kansas had the largest increase at 5.99%, followed by Arizona at 5.39% and Rhode Island at 5.38%. Nebraska and Virginia recorded the largest upward ranking shifts, each rising 17 places—Nebraska to eighth on a 4.6% increase and Virginia to 17th on a 4.28% increase.
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Commercial reconstruction costs
Commercial reconstruction costs increased 3.81% from October 2025 to October 2026 and 0.83% from July 2026 to October 2026.
Rhode Island had the largest annual increase at 6.68%, followed by Oregon at 5.24% and Arizona at 4.93%. South Dakota had the largest upward ranking shift, rising 31 places from 43rd place to 12th.
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Labor and materials
Material costs rose 3.09% from October 2025 to October 2026 and 0.85% quarter-over-quarter. Seven of eight tracked composites increased. Lumber posted the largest quarterly gain at 2.82%, followed by concrete at 1.08% and interior trim at 0.69%. Roofing declined 0.19%, while paint was virtually unchanged.
Combined hourly billable labor costs increased 4.51% from October 2025 to October 2026 and 0.95% for the quarter compared with last quarter’s 1.4% increase. All eight tracked trades posted quarterly gains, with roofers leading at 1.45%.
Market expectations
Market expectations anticipate reconstruction costs increasing 1.45% for residential properties and 2.99% for commercial properties from October 2026 to April 2027.
360Value delivers forward-looking insights every quarter via CSV download, including 3-, 6-, and 12-month future indexes for residential and commercial structures based on regional reconstruction costs down to individual ZIP codes.
Read the latest 360Value Quarterly Reconstruction Cost Analysis for more information on this quarter’s performance.
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