Solutions

Commercial Product Bulletin

1st Quarter 2019

Overview

Commercial Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the commercial and agricultural building industry. A few of this quarter’s highlights are:

  • In Q4 2018, the average for U.S. building materials decreased by -0.8%.  For labor, the average wage rate increased by 0.5%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials decreased by -0.2% over the quarter. For labor, the average wage rate increased by 0.1%, based on construction trade contracts that were renewed during the quarter.
                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit1.0%9.4%-0.5%0.8%
Asphalt Shingles2.8%3.6%1.2%3.8%
Concrete Block0.2%3.1%0.7%4.6%
Drywall1.2%6.6%1.1%9.1%
Felt Paper0.9%0.9%0.6%2.7%
Galvanized Pipe1.9%8.2%-0.3%-3.0%
Lumber-2.2%12.2%-0.9%13.8%
Plywood-4.7%13.3%-1.8%9.0%
Ready Mix0.1%2.9%-0.1%0.6%
Rebar1.4%16.1%1.2%11.2%
Steel Deck1.7%11.1%0.3%1.9%
Steel Stud2.4%14.7%2.0%9.0%
Structural Steel1.1%19.5%0.9%15.9%
1/2″ Copper Pipe-1.1%-1.6%0.0%-0.4%

National Average

Building Construction Index
Q4 2018

National AverageCommercialAgricultural
United States1.0%1.2%
Canada0.3%0.4%

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.

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.

United States

U.S. Regional Weighted Commercial Cost Changes

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

In Q4 2018, the average for U.S. building materials decreased by -0.8%, For labor, the average wage rate increased by 0.5%, based on construction trade contracts that were renewed during the quarter.

US Quarterly Material Cost Changes1Q172Q173Q174Q171Q182Q183Q184Q18
Aluminum Conduit0.20.43.23.83.03.12.01.0
Concrete Block0.40.61.00.50.70.91.20.2
Drywall0.52.00.30.20.53.21.61.2
Galvanized Pipe-0.6-0.10.50.1-0.10.35.91.9
Ready Mix2.61.0-0.5-0.13.60.2-1.00.1
Rebar1.20.30.2-1.80.75.28.11.4
Steel Deck0.61.80.3-0.10.32.56.21.7
Steel Stud1.42.20.21.01.42.97.32.4
Structural Steel0.32.5-0.4-1.1-0.35.911.91.1
½” Cooper Pipe3.04.80.7-2.8-0.80.7-0.3-1.1

U.S. State by State

Building Construction Index
Q4 2018

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

StateCommercialAgricultural
Alabama0.38%0.86%
Arizona0.57%0.99%
Arkansas-0.09%0.15%
California0.49%0.56%
Colorado0.65%0.71%
Connecticut0.24%0.25%
Delaware1.16%1.60%
District of Columbia0.19%0.20%
Florida0.40%0.77%
Georgia-0.20%0.10%
Idaho1.49%2.24%
Illinois0.22%0.25%
Indiana0.86%0.74%
Iowa0.43%0.66%
Kansas0.87%0.84%
Kentucky0.28%0.49%
Louisiana0.46%1.10%
Maine0.62%1.21%
Maryland0.67%0.94%
Massachusetts0.88%1.13%
Michigan0.39%0.29%
Minnesota0.22%0.48%
Mississippi0.10%0.16%
Missouri0.97%1.11%
Montana0.35%0.63%
Nebraska0.11%0.23%
Nevada0.75%1.09%
New Hampshire0.43%0.55%
New Jersey0.73%0.87%
New Mexico0.77%1.50%
New York0.26%0.47%
North Carolina0.90%1.14%
North Dakota0.47%0.84%
Ohio0.71%0.91%
Oklahoma0.17%0.53%
Oregon1.49%1.60%
Pennsylvania0.66%1.03%
Rhode Island0.78%0.80%
South Carolina0.61%0.67%
South Dakota0.07%0.10%
Tennessee0.36%0.80%
Texas0.67%0.90%
Utah0.19%0.70%
Vermont0.33%0.00%
Virginia0.71%1.12%
Washington1.43%1.69%
West Virginia0.52%1.13%
Wisconsin0.16%0.15%
Wyoming-0.06%0.00%
Alaska0.15%0.44%
Hawaii0.07%0.00%

q4 2018 Commercial Agriculture

 

Canada

Canada Regional Weighted Commercial Cost Changes

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

The average change for Canadian building materials decreased by -0.2% over the quarter, For labor, the average wage rate increased by 0.1%, based on construction trade contracts that were renewed during the quarter.

Canada Quarterly Material Cost Changes2Q173Q174Q171Q182Q183Q184Q181Q19
Aluminum Conduit-1.7-1.9-0.7-0.10.70.7-0.50.1
Concrete Block1.11.10.81.00.92.00.70.6
Drywall1.72.61.61.33.03.41.12.9
Galvanized Pipe-1.8-0.2-1.9-1.6-1.0-0.1-0.3-2.0
Ready Mix-1.7-0.9-0.75.4-0.8-3.7-0.13.9
Rebar-0.1-0.2-0.50.22.17.41.20.1
Steel Deck0.2-0.20.10.50.30.80.3-0.1
Steel Stud0.40.60.40.12.04.72.00.6
Structural Steel0.2-0.4-0.6-0.13.111.50.9-0.4
½” Cooper Pipe1.9-0.7-1.4-0.1-0.40.20.00.6

Canada Province by Province

Building Construction Index
Q4 2018

The table below provide a province by province snapshot of the changes in reconstruction costs for commercial and agricultural buildings.

ProvinceCommercialAgricultural
Alberta0.39%0.47%
British Columbia0.55%0.65%
Manitoba0.27%0.29%
New Brunswick0.53%0.98%
Nova Scotia0.55%0.03%
Ontario0.25%0.31%
Quebec0.22%0.31%
Saskatchewan-0.05%0.23%
Newfoundland and Labrador0.15%0.20%
Prince Edward Island0.04%1.00%

Canada Commercial Map