Chart of the Month – October 2024
The COVID-19 pandemic was a defining moment that changed many things, including construction costs. While there are always regional differences in home reconstruction prices, the period between Q2 2020 and Q2 2021 saw unprecedented growth in material prices, with some areas spiking by almost 25%.
Following that spike, prices continued to rise, but at a slower rate, from Q2 2021 to Q2 2022 before declining and bottoming out between Q2 2022 and Q2 2023.
However, pricing once again picked up between Q2 2023 and Q2 2024, stabilizing at similar levels seen prior to the pandemic.
- Reconstruction costs spiked by an average of 16.6% between Q2 2020 and Q2 2021 before dropping by -1.9% on average between Q2 2022 and Q2 2023.
- San Francisco had the smallest average growth (10.6%) in reconstruction costs and New York had the largest increase (22.7%) during the pandemic (Q2 2020-Q2 2021). However, although the growth spanned the two extremes, both cities were among the top three most expensive areas in terms of overall pricing.
- Reconstruction costs stabilized to slightly above pre-pandemic levels between Q2 2023 and Q2 2024 following a year of declines from Q2 2022 and Q2 2023.
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