Prices for materials and labor required for home repair and remodeling projects rose at their fastest pace in two years during the second quarter as Iran war impacts tangled global supply chains and caused energy prices to spike.

Repair and remodeling costs jumped nearly 1% from April through June, Verisk Analytics reported Wednesday. That compares to 0.47% quarterly growth at the end of 2025 and revised 0.69% growth over the first three months of 2026.

“The conflict in Iran and the resulting rise in oil prices, energy costs, inflation and interest rates account for much of the movement,” read the Verisk report. The company’s index tracks more than 10,000 line items across 31 repair and remodeling categories, including appliances, windows and partial roof replacements.

Flagging 2.88% growth in the index from a year ago, Verisk underscored that repair and remodeling costs lagged growth in the consumer price index. That widely followed measure of inflation rose 3.8% in April, 4.2% in May and 3.5% in June.

Repair and remodeling projects are not immune to global energy and trade shocks, however, which led Verisk to foreshadow future price increases in its first-quarter report. Those impacts ultimately emerged in the second-quarter data.

“Verisk data shows that higher oil prices have a direct impact on a number of building products like asphalt roofing and PVC pipe, and on transportation costs due to increases in diesel and jet fuel,” said Greg Pyne, vice president of pricing for Verisk Property Estimating Solutions, in Wednesday’s index update.

More increases may be on the way, given manufacturing lags and expectations that damaged infrastructure limiting oil production and refining capacity across the Middle East could take months to get back online — even if the war were to end soon.

But few obvious signs point to an imminent resolution, with the conflict now in its seventh month and tit-for-tat airstrikes between the U.S. and Iran pushing global crude oil prices above $100 per barrel again this week.

Repair and remodeling costs increased more quickly on a quarterly basis in all nine U.S. census regions, with the largest regional increases occurring across East North Central and East South Central states, which posted quarterly growth over 1.15%. Twenty-one states experienced quarterly increases exceeding 1%, with the largest gains in Arkansas, Kentucky and Wisconsin.

Higher repair and remodeling costs are likely to further dampen real estate investor optimism in the fix-and-flip segment, which has faced consistent margin pressure amid high acquisition and holding costs, softening after-repair values (ARVs) and sluggish resale demand exacerbated by steadily rising mortgage rates.

During the second quarter, 5% more flippers missed their ARV target compared to the share who exceeded it. That is the fourth time in the past five quarters that more flippers have missed than exceeded their target, according to survey findings published in early August by investor-lender Kiavi and housing advisory John Burns Research and Consulting.