Solutions

Residential Product Bulletin

1st Quarter 2018

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Overview

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 Q3 2017 to Q4 2017, the average for U.S. building materials increased by 1.9%. 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 was an increase of 1.9% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.1%.
 

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:

Q12018-residential-overview-english

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 costs 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.

UNITED STATES

U.S. RCT Express® Cost Changes

From Q3 2017 to Q4 2017, the average for U.S. building materials increased by 1.9%. 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:

Q120128 US Material Changes-english

U.S. State by State Cost Changes

The table below provides a state by state snapshot of the changes in reconstruction costs for residential buildings.

Q3 2017 compared to Q4 2017

q12018-residential-state-by-state-english_final

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 1st quarter.

From Q3 2017 to Q4 2017, the average change for Canadian building materials was an increase of 1.9% over the quarter. For labor, the average wage rate increased 0.1%, 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:

Q120128 Canada Material Change

Canada Province by Province Cost Changes

The table below provides a province by province snapshot of the changes in reconstruction costs for residential buildings.

Q3 2017 compared to Q4 2017

q1 2018 residential canada-by-province-english

Whats New

Note: CoreLogic recommends a full program install whenever possible to ensure use of latest data and program enhancements.

Cost Data Changes:

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

The first quarter 2018 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.

RCT Main Street, High Value, 4.x and Mobile Manufactured Housing – Saskatchewan Sales Tax Change

Based on legislation passed in 2017, the Saskatchewan sales tax rate has been updated to 11% and will be applied to both labor and material.

RCT Mobile Manufactured Housing and RCT 4.x – 2018 Historical Depreciation Tables

Each year as part of the first quarter update, the Mobile Manufactured Home Historical Depreciation table is updated to reflect changes to the year built range 1950 to 2019.

Non-Cost Data Changes:

RCT 4.x Knowledge Table Updates

As part of the first quarter 2018 cost data update, updates have been made to the foundation type and foundation material assumption tables. A total of 844 coastal zip codes spanning 9 states (Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia) were analyzed for their most prevalent foundation type. After review, a total of 238 zip codes received updates from their previous foundation type to a foundation type of Pier. In addition, those zip codes that were updated to Pier foundations also had the foundation material updated from Concrete to Wood, Treated.