Solutions

Residential Product Bulletin

1st Quarter 2019

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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 2018 to Q4 2018, the average for U.S. building materials decreased by 1.3%. 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 a decrease of 0.7% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.1%.

 

                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit1.1%7.9%-0.4%0.9%
Asphalt Shingles2.9%4.8%0.6%3.9%
Concrete Block0.3%2.8%0.5%4.0%
Drywall0.5%6.4%1.3%9.5%
Felt Paper0.7%1.2%0.8%2.1%
Galvanized Pipe1.7%9.3%-0.6%-2.7%
Lumber-5.0%8.6%-4.1%9.0%
Plywood-5.3%7.0%-5.0%2.6%
Ready Mix0.1%1.8%0.2%-1.1%
Rebar0.9%16.1%1.0%11.9%
Steel Deck1.2%11.5%0.0%1.9%
Steel Stud2.1%14.9%2.2%9.7%
Structural Steel0.9%19.9%1.4%17.0%
1/2″ Copper Pipe-1.6%-1.4%0.3%-0.2%
 

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. Regional RCT Express® Cost Changes

From Q3 2018 to Q4 2018, the average for U.S. building materials decreased by 1.3%. 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:

United States1Q172Q173Q174Q171Q182Q183Q184Q18
Asphalt Shingles0.1%-0.2%-0.4%-0.1%-0.2%0.3%1.7%2.9%
Romex Wire6.2%5.8%1.9%6.9%6.6%2.9%-1.0%-3.3%
1/2″ Drywall1.5%1.3%0.2%0.2%1.5%2.5%1.7%0.5%
Felt Paper0.5%0.0%-0.3%-0.3%-0.3%0.3%0.5%0.7%
R-13 Fiber Batt Insulation0.5%0.2%-0.1%0.3%0.2%-1.1%1.8%2.2%
2×4 Lumber2.0%5.5%6.3%3.9%1.6%5.3%6.8%-5.0%
1/2″ Plywood-0.1%3.2%1.3%12.5%3.4%7.0%2.1%-5.3%
Ready Mix3.4%-0.2%-0.4%1.2%2.8%-0.8%-0.4%0.1%
1/2″ Copper Pipe4.4%4.0%-0.8%-3.2%0.6%-0.1%-0.2%-1.6%
 

United States Cost Variances by State

Residential Reconstruction Costs
3Q18 to 4Q18

StateQuarterly Variance
Alabama-0.14%
Alaska-0.06%
Arizona0.17%
Arkansas0.22%
California0.30%
Colorado0.30%
Connecticut0.00%
Delaware0.01%
Florida0.24%
Georgia-0.17%
Hawaii-0.13%
Idaho0.29%
Illinois0.26%
Indiana0.31%
Iowa0.12%
Kansas0.15%
Kentucky0.00%
Louisiana0.09%
Maine0.29%
Maryland0.02%
Massachusetts0.23%
Michigan0.11%
Minnesota0.13%
Mississippi-0.11%
Missouri0.18%
Montana0.05%
Nebraska0.06%
Nevada0.51%
New Hampshire0.41%
New Jersey0.16%
New Mexico0.07%
New York0.08%
North Carolina0.20%
North Dakota-0.03%
Ohio0.01%
Oklahoma-0.05%
Oregon0.81%
Pennsylvania0.25%
Rhode Island0.06%
South Carolina0.10%
South Dakota0.00%
Tennessee0.17%
Texas0.26%
Utah0.45%
Vermont0.38%
Virginia0.19%
Washington0.88%
West Virginia0.24%
Wisconsin0.09%
Wyoming0.21%
 

Canada

Canada Regional RCT Express® Cost Changes

From Q3 2018 to Q4 2018, the average change for Canadian building materials was a decrease of 0.7% 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:

 

Canada1Q172Q173Q174Q171Q182Q183Q184Q18
Asphalt Shingles0.8%-0.5%-0.7%0.4%0.5%0.9%1.9%0.6%
Romex Wire2.8%1.0%-0.4%3.6%2.5%2.8%0.5%-0.5%
1/2″ Drywall3.2%1.4%1.7%1.8%1.5%3.8%2.5%1.3%
Felt Paper0.6%-0.4%-0.4%2.9%0.4%0.4%0.5%0.8%
 R-13 Fiber Batt Insulation0.8%0.4%1.7%1.4%1.4%1.9%1.5%1.3%
2×4 Lumber2.4%5.7%7.9%4.3%1.5%3.2%8.5%-4.1%
1/2″ Plywood0.9%0.9%10.0%10.3%-2.0%5.4%4.5%-5.0%
Ready Mix3.6%-2.7%-1.4%2.1%3.9%-3.5%-1.5%0.2%
1/2″ Copper Pipe2.1%0.9%-1.9%-0.4%0.1%-0.9%0.2%0.3%

Canada Cost Variances by Province

Residential Reconstruction Costs
Q3 2018 to Q4 2018

ProvinceQuarterly Variance
Alberta0.20%
British Columbia0.07%
Manitoba0.21%
New Brunswick-0.16%
Newfoundland0.29%
Northwest Territory0.04%
Nova Scotia0.09%
Ontario0.11%
Prince Edward Is.-0.48%
Quebec0.02%
Saskatchewan-0.27%
Yukon Territory0.18%

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 2019 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 Mobile Manufactured Housing and RCT 4.x – 2019 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 2020.

RCT High Value and 4.x

Updates were made to the costs associated with MSIDs 055715 “Countertop, Granite” and 055720 “Countertop, Solid Surface” to more accurately represent current market costs.

Non-Cost Data Changes:

None