The cost of homeownership continues to rise higher — this time due to a steady increase in home repair and remodeling expenses. According to the Q1 2025 Verisk Remodel Index, the average cost of home repairs has jumped 3.97% year-over-year and nearly 1% just since Q4 2024.
That marks a significant change from a previous trend of slowing increases, making these rising costs an essential part of the homebuying equation. And it’s certainly a stark contrast to what homebuyers had to factor in a decade ago.
Verisk’s index, which tracks over 10,000 repair and remodeling items in 430 markets nationwide, shows that prices are now up more than 61% from Q1 2015 and over 72% since the index began in 2013.
While inflation, measured by the Consumer Price Index, rose just 2.4% over the same 12-month period, home repair costs have outpaced it significantly. Greg Pyne, vice president of pricing for Verisk Property Estimating Solutions, pointed out that the recent quarter reversed a trend of slowing increases seen throughout 2024.
“The rate of increase in Q1 2025 jumped back up to 0.91%,” Pyne noted, “resulting in an annual cost increase of 3.97%, well above the rate of inflation.”
Labor-Intensive Categories Up Most
The standout cost surge came from vinyl window replacements, which climbed 2.51% in a single quarter. That category is 63% labor-based, highlighting the role that rising labor costs — now nearing 60% of total repair expenditures — play in the broader increase. Other categories seeing sizable jumps include garage door replacements (1.76%), tile flooring (1.48%), and bathroom remodels (1.32%).
On the other end of the scale, engineered wood flooring saw the smallest bump at just a 0.24% increase.
Regional Disparities and Weather Impacts
The South Atlantic region, still reeling from Hurricanes Helene and Milton, posted the highest annual increase at 4.72%. The Mountain and West North Central regions followed closely, both exceeding 4% annual growth.
And, while Southeastern states like Georgia, Florida, and South Carolina saw cost increases begin to moderate in Q1 2025, new hotspots emerged in places like Oregon (2.08%), Massachusetts (2.0%), and South Dakota (1.76%).
Verisk’s analysts caution that the effects of recent wildfires in California haven’t yet materialized in cost data—but similar price pressures could follow.
Considerations For Mortgage Pros
For loan officers and brokers, the data is a must-include addition to the overall cost narrative of homeownership. Rising repair costs don’t just affect existing homeowners — they can also impact prospective buyers' budgeting, particularly when evaluating fixer-uppers or older properties.
As affordability remains strained in many markets, preparing borrowers with a full, more complete cost picture — including the growing expense of upkeep — can lead to smarter lending and more confident buyers.
