Foundation Repair Costs Skyrocket in 2024: How Inflation and Supply Chain Disruptions Are Hitting Homeowners Hard

If you’ve been putting off that foundation repair, 2024 might not be the year to wait any longer. Foundation repair costs have risen by 15% to 20% since 2020 due to inflation and higher material costs, with the average jumping from approximately $4,400 in 2019-2020 to around $5,100 in 2025. This dramatic increase isn’t just a temporary blip – it’s the result of persistent inflationary pressures and ongoing supply chain challenges that continue to reshape the construction industry.

The Perfect Storm: Inflation Meets Supply Chain Disruption

Construction costs are expected to rise in 2025 driven by a combination of factors, including material price volatility, labor shortages, and supply chain disruptions, with JLL’s 2025 Construction Outlook expecting cost growth to be between 5% and 7%. For homeowners dealing with foundation issues, this translates into significantly higher repair bills than just a few years ago.

Inflation has had the biggest impact on replacement costs, starting with supply chain problems caused by the pandemic and exacerbated by labor shortages, increased consumer demand and global conflict, with clients still wrestling with the fact that the insurable replacement cost in the event of a loss would be significantly greater today than it would have been in 2019 or 2020, pre-COVID.

Material Costs Hit Foundation Repairs Hard

The materials essential for foundation repair have seen particularly steep price increases. Steel piers, epoxy sealants, and carbon fiber straps are more expensive in 2025 due to inflation and supply chain limitations, while labor shortages have also raised contractor rates across the country. Material costs vary widely based on current market conditions, with steel prices for reinforcement fluctuating significantly, affecting the cost of piering and stabilization projects.

Material prices are expected to remain elevated in 2025 due to ongoing supply chain issues and increased demand, with materials like steel and electrical components remaining expensive and subject to volatility. This volatility makes it difficult for contractors to provide stable pricing, often resulting in higher quotes to account for potential material cost increases during project timelines.

Labor Shortages Drive Up Costs

The construction industry’s labor shortage crisis is particularly acute in specialized fields like foundation repair. In 2023, 74% of builders reported labor shortages as a significant issue, and 75% expect it to remain a challenge in 2024, with the shortage of skilled workers being one of the primary drivers of increased costs as the construction industry has struggled to attract new talent, leading to higher wages as companies compete for a limited pool of qualified workers.

Labor typically costs around $200 per hour for foundation repair, but this rate has increased substantially from pre-pandemic levels. The specialized nature of foundation work means that experienced contractors command premium rates, and the limited pool of qualified professionals drives prices even higher.

Current Foundation Repair Cost Reality

Today’s homeowners face a sobering reality when it comes to foundation repair costs. As of 2025, the national average foundation repair cost is around $5,100, with most homeowners spending between $2,200 and $8,100 for typical repairs. However, homeowners can expect to pay anywhere from $2,500 to $15,000 for foundation repairs, with an average cost of around $5,500 to $8,000, though extensive structural repairs can exceed $20,000 in some cases.

The wide range in costs reflects the varying severity of foundation issues. Foundation repairs vary significantly in cost depending on the severity of the issue, the materials used, and your home’s condition, with repairs ranging from a few hundred dollars to $35,000+, though catching the warning signs early—like foundation cracks and water leaks—can help you bypass the most extensive (and most expensive) repairs.

Regional Variations and Local Factors

Location plays a crucial role in determining foundation repair costs. The cost of foundation repair varies by location, with the cost of labor and materials in your area affecting the price, as will your local climate. Geographic cost variation also comes from local labor rates and regulations, with California or Northeast cities having higher labor wages and permit costs that can inflate foundation repair bills.

For homeowners on Long Island, New York, companies like Diamond Masonry & Waterproofing have been serving the community since 2000. Diamond Basement Waterproofing, a division of Diamond Masonry & Waterproofing, has been servicing Long Island since 2000 and is a family-owned business that operates efficiently without a lot of overhead like many of the larger companies servicing the Long Island market, enabling them to deliver more affordable solutions to customers.

The Importance of Acting Quickly

With costs continuing to rise, addressing foundation issues promptly has never been more critical. Even a minor foundation crack can develop into a major structural problem if left untreated, potentially costing tens of thousands more to repair. While the costs in 2025 may be higher due to inflation and increased labor expenses, investing in foundation repair now can save you from even more expensive problems in the future, as ignoring foundation issues can lead to further structural damage, reducing your home’s value and making repairs more costly down the line.

Looking Ahead: What to Expect

Supply chain disruptions are expected to remain a challenge for the construction industry in 2025, driving up costs due to material shortages, delays, and rising transportation expenses, requiring construction firms to prepare for adjustments in their budgets and timelines. For homeowners, this means that waiting for costs to decrease may not be a viable strategy.

The combination of persistent inflation, ongoing supply chain challenges, and labor shortages suggests that foundation repair costs will likely continue their upward trajectory throughout 2024 and beyond. Homeowners facing foundation issues should consider getting multiple quotes and addressing problems sooner rather than later to avoid even higher costs down the road.