Hail volatility and aging roofs are driving higher residential replacement severity, a new study by data analytics and technology provider Verisk finds.

Roof losses didn’t slow despite a 20 percent decline in overall claims volume in 2025.

Data showed that the average U.S. residential replacement costs jumped 33% and repair costs climbed 25% in 2025, compared to the prior four-year average.

Average residential roof replacement costs reached $17,631 in 2025, with repair costs averaging $4,699.

Residential roof replacement cost value (RCV) declined to $23 billion in 2025, compared to an average of $24.4 billion from 2021 to 2024, the study found. The 2025 decline was driven by a limited U.S. landfall hurricane season, though RCV remained elevated.

In Verisk Risk Analyzer®-designated hail states, 57% of residential properties have roofs nine years old or newer, compared with 38% in non-hail states, highlighting faster replacement cycles alongside significant local volatility.

The Midwest and Northeast have the highest shares of older residential roofs (31+ years), at 17% and 18%, respectively, compared with just 4% in the South.

The study found that hail volatility and aging roof stock are driving increased risk across U.S. insurance, construction and housing markets.

Roofing claims represent a large portion of all property claims within the U.S., with roofing line items representing approximately 30% of all line items within claims estimates. As such, roofing trends are often in line with larger claims trends.

Roofs that are visibly in moderate to poor condition show approximately 60 percent higher loss costs than roofs in good or excellent condition, according to Verisk’s Roof Condition Score® (RCS) 2025 baseline data.

Severe hail activity – considered to be hail greater than or equal to 1 inch in diameter – was concentrated in the Central Plains, while previous years have been more impactful to the Northern and Southern Plains. Arkansas, Kansas, Nebraska, Oklahoma and South Dakota rank among the top states by the share of roofs impacted by severe hail.

Sixteen states in the U.S. experienced severe hail impacts on more than 20% of roofs, up from twelve in 2024.

Year-to-year, “giant” hail (greater than or equal to 2 inches) tends to follow more stable geographic patterns, while “large” hail (1–2 inches) shows much wider metro-level volatility, with hundreds of local markets experiencing meaningful year-to-year increases in hail activity, data showed.

“Hail risk is not just about one monster storm; it’s the cadence of frequent, smaller-scale events that can rapidly age and weaken a roof,” said Tory Farney, vice president, Verisk Weather Solutions. “Large hail may cause less damage per event than giant hail, but its wider footprint and year to year variability can drive unexpected concentrations of damage. Understanding where hail is most likely to cluster helps insurers, contractors and communities prepare for faster, more resilient recovery.”

Verisk found that the nation’s roof inventory highlighted striking regional variations that directly correlate with the exposure patterns.

South: 28% of roofs are 0–4 years old, and only 4% are 31 years or older, reflecting a higher turnover driven by severe weather events and rapid housing growth.
Midwest: 21% of roofs are 0–4 years old, while 17% are 31 years or older.
Northeast: 14% of roofs are 0–4 years old; 18% are 31 years or older.
West: 20% of roofs are 0–4 years old; 11% are 31 years or older.

“Accurately assessing roof age, condition and remaining life is a critical part of understanding a property’s vulnerability to wind and hail,” said Ryan D’Amario, senior vice president of property product management at Verisk. “Aerial imagery analytics reveal that, as of 2025, 38 percent of U.S. residential homes show moderate to poor roof condition—often with visible defects that can materially influence performance during severe weather. When more than a third of the housing stock falls into this category, roof condition becomes a core underwriting signal that has meaningful implications for risk selection, loss predictability and pricing accuracy.”

Compounding the rising costs, inflation in roofing materials continues to outpace labor costs, even as national averages mask significant variation across states, the data highlighted. In 2025, roofer labor costs increased 0.79%, compared with a 1.48% rise in roofing material costs.

Sharp regional swings in material pricing also contribute to rising costs. For example, roofing material costs climbed 10.37% in Nevada in 2025, while declining 15.80% in New Hampshire.