The aggregate pace of home repair and remodeling cost increases slowed for the fourth consecutive year in 2025, according to newly published data from Verisk Analytics, a property market analytics firm.

Material and labor prices for projects like replacing tile flooring, remodeling a full bath or priming and painting home exteriors collectively rose about 2.71% last year, dropping below the average annual growth of 2.83% from 2013 through 2019.

Greg Pyne, vice president of pricing for Verisk Property Estimating Solutions, a division of Verisk Analytics, said that 2025 marked the first year since 2016 that repair and remodeling costs rose at or below the rate of inflation, as tracked by the consumer price index.

He added that “it will be interesting to see if the lower rate of cost increases continues through 2026, or is a one-time blip like we saw in 2016,” in commentary accompanying fourth-quarter and year-end findings in Verisk’s updated Repair and Remodel Index.

The index tracks costs on more than 10,000 line items ranging from windows to appliances in more than 430 local markets across the U.S.

Supply chain disruptions, labor shortages and surging inflation fueled by the COVID-19 pandemic drove annual appreciation for repair and remodeling costs to 6.22% in 2020, 12.34% in 2021 and 7.68% in 2022 — before falling to 5.56% in 2023 and 3.65% last year. Repair and remodeling costs have increased more than 65% in the past 10 years, Verisk noted.

However, cost increases slowed on a quarterly basis, too, rising just 0.47% in the last three months of 2025 compared to 0.72% growth in the third quarter. Vermont, Oregon and Washington, D.C., displayed the largest quarterly cost increases, the updated index showed.

“Quarterly price increases appear to be driven primarily by labor,” the report further indicated, with the share of labor costs in overall repair and remodeling budgets continuing to account for nearly two-thirds of outlays. Five of the six categories showing the largest quarterly increases in prices occurred “among those that are the most labor-intensive.”

Among the nine U.S. census divisions, annual repair and remodeling costs increased the fastest in West North Central and Pacific states, gaining 3.22% and 2.94%, respectively. Costs rose slowest in South Atlantic and East South Central states, which posted 2.23% and 2.53% annual increases.

New Hampshire and Rhode Island were the only states that notched quarterly declines in aggregate repair and remodeling costs, with respective declines of 0.85% and 0.26%.