Houston, TX
What’s Changed in 5 Years
Construction and restoration costs have surged 30–60% since 2020 — and in many markets, even more. A job that cost $150 per square foot to restore in 2019 regularly runs $220 or higher today.
The causes aren’t a mystery: COVID shattered supply chains and spiked material costs. Lumber alone jumped over 300% at its peak. A skilled labor shortage — already brewing before the pandemic — got worse and hasn’t recovered. Fuel, logistics, and increased catastrophic weather events added more pressure on top. Then factor in updated building codes requiring upgrades on any modern rebuild, and you have a new cost baseline that’s here to stay.
Where It’s Headed
Material prices have stabilized from their worst peaks — but they haven’t gone back. Labor rates are structurally higher and rising. In high-demand markets like Florida, Texas, and the Gulf Coast, contractors are booked out for months and pricing accordingly.
Claims valued on 2021 or 2022 numbers are being underpaid today. The gap between carrier estimates and actual restoration costs has never been wider.
Why Appraisal Keeps Pace — and Carriers Don’t
Carrier estimates often rely on regional pricing databases that lag the real market by months or years. Appraisal puts your claim in front of independent professionals pricing jobs the way contractors actually bid them — right now, in your market.
That means current labor rates. Current material costs. Current code requirements. The appraisal process isn’t just a dispute mechanism — it’s how policyholders close the gap between what they’re offered and what it actually costs to rebuild.
If your settlement feels low, it probably reflects yesterday’s prices. You have the right to challenge it.
Vantix Scope specializes in insurance appraisal and damage loss assessment — keeping your claim current with what restoration actually costs today.
The information in this post is provided for general educational purposes only and reflects broad market trends. It does not constitute legal, financial, or claims advice. Every insurance claim is unique — consult a licensed public adjuster or attorney for guidance specific to your situation.