Solutions

Commercial Product Bulletin

1st Quarter 2022

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 2021, the average for U.S. building materials decreased by -4.2%. For labor, the average wage rate increased by 0.7%, based on construction trade contracts that were renewed during the quarter.

    The average change for Canadian building materials decreased by -3.4% over the quarter, for labor, the average wage rate increased by 0.8%, based on construction trade contracts that were renewed during the quarter.

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

 United StatesCanada
 QuarterYearQuarterYear
Aluminum Conduit11.5%29.1%3.1%11.3%
Asphalt Shingles3.6%7.0%3.6%5.9%
Concrete Block2.4%4.9%2.2%4.7%
Drywall3.8%6.7%2.1%3.6%
Felt Paper4.6%8.6%4.3%8.4%
Galvanized Pipe19.6%39.0%17.8%31.0%
Lumber-30.0%26.1%-34.6%18.8%
Plywood-35.7%62.0%-24.4%57.1%
Ready Mix2.4%6.4%2.1%7.7%
Rebar13.5%27.6%16.1%23.3%
Steel Deck28.3%45.3%11.7%20.0%
Steel Stud19.4%40.5%11.8%22.8%
Structural Steel13.1%30.2%10.1%19.2%
1/2″ Copper Pipe22.8%65.9%19.5%33.9%

National Average

Building Construction Index
Q4 2021

National Average Commercial Agricultural
United States0.3%2.1%
Canada0.2%1.7%

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.7.0

United States

U.S. Regional Weighted Commercial Cost Changes

In Q4 2021, the average for U.S. building materials decreased by -4.2%.  For labor, the average wage rate increased by 0.7%, based on construction trade contracts that were renewed during the quarter.

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:

US Quarterly Material Cost Changes3Q194Q191Q202Q203Q204Q201Q212Q213Q214Q21
Aluminum Conduit0.10.60.61.0-1.02.02.17.25.711.5
Concrete Block0.40.81.00.70.60.7-0.40.52.32.4
Drywall0.30.7-0.5-0.10.00.7-0.11.51.43.8
Galvanized Pipe0.80.50.50.50.60.30.02.313.619.6
Ready Mix1.50.90.71.00.21.70.61.71.52.4
Rebar0.5-0.10.8-0.10.40.10.63.28.313.5
Steel Deck-0.30.00.40.60.10.80.62.69.728.3
Steel Stud0.11.50.20.60.60.80.45.411.219.4
Structural Steel-1.3-0.8-0.3-0.8-0.10.30.65.68.313.1
½” Cooper Pipe-0.3-1.4-0.4-0.4-0.30.31.011.619.922.8

U.S. State by State

Building Construction Index
Q4 2021

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

StateCommercialAgricultural
Alabama1.00%3.32%
Arizona-0.21%0.58%
Arkansas1.11%3.28%
California0.34%1.72%
Colorado-1.18%-0.01%
Connecticut-0.64%0.83%
Delaware0.57%1.40%
District of Columbia-0.07%0.79%
Florida1.10%2.93%
Georgia1.42%3.82%
Idaho0.66%1.96%
Illinois-0.59%1.38%
Indiana0.13%1.35%
Iowa-0.04%2.52%
Kansas1.11%2.45%
Kentucky0.77%2.55%
Louisiana0.73%2.51%
Maine-0.10%1.72%
Maryland0.35%2.39%
Massachusetts0.11%1.85%
Michigan1.21%3.01%
Minnesota0.18%2.27%
Mississippi-0.07%1.94%
Missouri-0.65%1.02%
Montana-0.78%1.22%
Nebraska-0.82%1.16%
Nevada-0.31%0.60%
New Hampshire1.27%3.37%
New Jersey2.55%3.09%
New Mexico-0.23%1.69%
New York0.27%1.60%
North Carolina1.01%2.67%
North Dakota-0.08%2.28%
Ohio0.12%1.90%
Oklahoma-0.37%1.78%
Oregon0.43%2.61%
Pennsylvania0.79%2.27%
Rhode Island-0.59%1.10%
South Carolina2.25%3.94%
South Dakota-0.13%1.39%
Tennessee1.02%4.00%
Texas0.00%2.30%
Utah0.37%2.61%
Vermont2.64%4.25%
Virginia0.45%2.58%
Washington0.03%1.97%
West Virginia-0.19%1.47%
Wisconsin0.05%2.49%
Wyoming-0.69%1.18%
Alaska-0.83%0.83%
Hawaii1.88%1.30%

Q4 2021 United States

Commercial Building Construction Index

Q4 2021 United States

Agricultural Building Construction Index

Canada

Canada Regional Weighted Commercial Cost Changes

The average change for Canadian building materials decreased by -3.4% over the quarter, for labor, the average wage rate increased by 0.8%, based on construction trade contracts that were renewed during the quarter.

Canada Quarterly Material Cost Changes

3Q194Q191Q202Q203Q204Q201Q212Q213Q214Q21
Aluminum Conduit1.91.50.81.10.10.60.04.53.43.1
Concrete Block1.10.70.70.40.11.10.10.61.72.2
Drywall1.20.80.30.10.20.40.40.20.92.1
Galvanized Pipe1.21.91.61.61.31.71.51.97.617.8
Ready Mix0.81.10.02.21.52.52.02.31.02.1
Rebar-1.6-1.6-0.6-1.10.2-0.50.22.03.916.1
Steel Deck0.90.81.70.81.11.40.42.74.311.7
Steel Stud1.10.70.90.91.00.80.41.77.611.8
Structural Steel0.80.30.50.60.30.20.33.64.210.1
½” Cooper Pipe0.41.01.81.50.40.50.22.29.519.5

Canada Province by Province

Building Construction Index
Q4 2021

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

ProvinceCommercialAgricultural
Alberta-0.12%1.45%
British Columbia0.25%1.97%
Manitoba-0.85%1.67%
New Brunswick-0.59%0.75%
Nova Scotia0.30%1.52%
Ontario-0.02%1.54%
Quebec0.70%1.52%
Saskatchewan0.22%3.78%
Newfoundland and Labrador1.09%2.98%
Prince Edward Island2.44%4.45%

Q4 2021 Canada
Commercial Building Construction Index

Q4 2021 Canada
Agricultural Building Construction Index