RCT Express® Product Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the residential building industry. A few of this quarter's highlights are:

  • From Q1 2016 to Q2 2016, the average for U.S. building materials declined by 2.0%. For labor, the average wage rate increased 0.4%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials increased by 0.2% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 2.1%.

About CoreLogic Data Research

To ensure that our clients receive the most current building material and labor costs, the CoreLogic data team continuously researches hard costs such as labor, material and equipment, including mark-ups. Our research also covers soft cost such as taxes and fringes for reconstruction work performed for the insurance industry in the United States and Canada. We monitor demographics and econometric statistics, government indicators, and localization requirements, including market trends from nearly 3,000 unique economies in the United States, and over 100 in Canada.

  • Other factors in this process include the following:
  • Wage rates for more than 85 union and non-union trades
  • Over 100,000 line items of construction data
  • Productivity rates and crew sizes
  • Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. For more information, or for further explanation, please contact your sales consultant or account manager.

NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America. You should NOT advocate using these factors when adjusting renewal values for specific locations or across your book of business. Please note that the building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials.

 

 

U.S. Regional RCT Express® Cost Changes

The map and table at right provide a snapshot of the changes in reconstruction costs for residential buildings in the first quarter, broken into six U.S. geographic regions.

From Q1 2016 to Q2 2016, the average for U.S. building materials declined by 2.0%. For labor, the average wage rate increased 0.4%, based on construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

U.S. Regional Quarterly Cost Changes:

Q1 2016 compared to Q2 2016

 

Canada Regional RCT Express® Cost Changes

The map and table at right provide a snapshot of the changes in reconstruction costs for residential buildings in the first quarter, broken into four Canadian geographic regions.

The average change for Canadian building materials increased by 0.2% over the quarter. For labor, the average wage rate increased 2.1%, based on the construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

Canada Regional Quarterly Cost Changes:

Q1 2016 compared to Q2 2016

NOTE: Remember, CoreLogic recommends a full program install whenever possible to ensure full use of the latest date and program enhancements.

Cost Data Changes

2Q 2016 RCT Main Street, High Value, 4.x, and Mobile Manufactured Housing

The second quarter 2016 cost data update reflects reconstruction cost changes in both labor and material. Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.

Non-Cost Data Changes

The Q2 2016 cost update for RCT 4 Express sites is accompanied by an enhanced estimatics capability in order to use newer architecture making it more scalable and easier to add new functionality. The change in estimatics process will not impact working and behavior of the RCT 4 Express sites, and has been extensively tested to verify that valuation results are consistent with the previous versions.

2Q 2016 RCT 4.x USA Knowledge Table Update

The primary purpose of the RCT Knowledge Tables is to provide default building characteristic assumptions when actual information is not readily available or is unknown. Knowledge Table information is based on analysis of actual house data through multiple methods and is refreshed on a continuous basis.

The following Knowledge Table Defaults have been updated in RCT 4.x USA:

  • Vinyl flooring has been removed as a default for homes with a total living area over 3,000 square feet.
  • The kitchen and bathroom knowledge tables have been updated based on recent research. In the past, the quality levels of the kitchens and bathrooms were determined solely on whether or not the subject property was located in a high worth or non-high worth zip code. The update now incorporates total living area in addition to zip code to determine the quality level of kitchens and baths.