Solutions

Residential Product Bulletin

1st Quarter 2022

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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 2021 to Q4 2021, the average for U.S. building materials increased 1.0%. For labor, the average wage rate increased 0.9%, based on construction trade contracts that were renewed during the quarter. 
  • The average change for Canadian building materials was a decrease of -0.4% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.8%.
 United StatesCanada
 QuarterYearQuarterYear
Aluminum Conduit2.1%30.2%1.8%12.3%
Asphalt Shingles3.0%8.2%1.8%7.2%
Concrete Block4.0%7.4%3.0%6.0%
Drywall5.0%9.3%2.7%5.5%
Felt Paper4.8%10.1%4.6%10.1%
Galvanized Pipe12.3%42.1%4.8%32.3%
Lumber-14.9%15.6%-19.2%0.0%
Plywood-19.6%47.0%-16.1%34.3%
Ready Mix1.5%6.7%1.6%7.6%
Rebar2.5%29.3%2.1%24.9%
Steel Deck9.2%49.4%5.6%22.5%
Steel Stud23.0%50.7%18.0%30.4%
Structural Steel4.2%34.2%3.2%21.5%
1/2″ Copper Pipe14.2%70.1%10.2%38.6%

National Average

Residential Reconstruction Costs
4Q21 to 1Q22

 Quarterly Variance
United States-0.35%
Canada-1.58%

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

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 4th quarter.

From Q3 2021 to Q4 2021, the average for U.S. building materials increased by 1.0%.  For labor, the average wage rate increased 0.9%, 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 States1Q202Q203Q204Q201Q212Q213Q214Q21
1/2″ Drywall-0.6%0.0%0.5%0.2%0.1%1.8%2.2%5.0%
Asphalt Shingles0.7%0.5%0.5%0.4%0.6%0.9%3.5%3.0%
Romex Wire-1.1%-0.8%1.2%2.4%5.6%51.9%53.7%2.9%
1/2″ Plywood-1.9%1.4%4.7%27.1%5.6%88.8%-8.3%-19.6%
2×4 Lumber1.2%3.3%4.6%35.4%5.3%53.9%-16.1%-14.9%
R-13 Fiber Batt Insulation1.7%2.6%1.8%1.7%1.7%7.5%0.6%-0.4%
1/2″ Copper Pipe-0.1%-0.7%0.0%1.0%3.0%15.6%25.2%14.2%
Ready Mix0.6%0.9%0.5%1.8%0.6%1.7%2.7%1.5%
Felt Paper0.1%0.2%0.3%0.1%0.5%0.9%3.5%4.8%

 

United States Cost Variances by State

Residential Reconstruction Costs

4Q21 to 1Q22

StateQuarterly Variance
Alabama0.28%
Alaska-0.65%
Arizona0.13%
Arkansas-0.68%
California-0.47%
Colorado-0.57%
Connecticut-0.71%
Delaware0.02%
Florida-0.22%
Georgia-0.20%
Hawaii0.76%
Idaho-0.25%
Illinois-0.23%
Indiana0.25%
Iowa-0.19%
Kansas-0.02%
Kentucky-0.12%
Louisiana-1.61%
Maine-0.91%
Maryland-0.71%
Massachusetts0.25%
Michigan-0.28%
Minnesota-0.26%
Mississippi-1.03%
Missouri-0.35%
Montana0.26%
Nebraska-0.62%
Nevada0.05%
New Hampshire-0.75%
New Jersey-0.49%
New Mexico0.30%
New York-0.71%
North Carolina-0.37%
North Dakota-0.71%
Ohio-0.11%
Oklahoma-0.88%
Oregon-0.42%
Pennsylvania-0.16%
Rhode Island0.14%
South Carolina0.53%
South Dakota-0.71%
Tennessee-0.12%
Texas-0.44%
Utah-0.15%
Vermont-1.07%
Virginia-0.79%
Washington-0.40%
West Virginia-0.60%
Wisconsin-0.63%
Wyoming-0.24%

1Q 2022 United States

RCT Express® Cost Variances by State

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 4th quarter.

From Q3 2021 to Q4 2021, the average change for Canadian building materials was a decrease of -0.4% over the quarter. For labor, the average wage rate increased 0.8% 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:

Canada1Q202Q203Q204Q201Q212Q213Q214Q21
1/2″ Drywall0.2%0.3%0.2%0.4%0.2%0.3%2.2%2.7%
Asphalt Shingles0.9%0.2%0.1%0.1%0.3%0.5%4.5%1.8%
Romex Wire0.0%0.4%0.6%0.5%3.6%45.8%35.2%7.1%
1/2″ Plywood-1.4%-1.3%1.3%30.8%2.4%62.9%-4.0%-16.1%
2×4 Lumber0.3%2.0%3.8%62.7%1.2%47.3%-16.9%-19.2%
R-13 Fiber Batt Insulation2.3%1.7%2.6%1.9%1.6%4.5%4.0%1.9%
1/2″ Copper Pipe1.7%1.2%0.4%0.4%1.1%0.9%23.2%10.2%
Ready Mix0.7%2.1%1.5%3.0%1.7%2.5%1.6%1.6%
Felt Paper1.2%1.1%0.6%0.4%0.6%0.8%3.8%4.6%
 

Canada Cost Variances by Province

Residential Reconstruction Costs
4Q21 to 1Q22

ProvinceQuarterly Variance
Alberta-2.45%
British Columbia-2.26%
Manitoba-1.70%
New Brunswick-0.61%
Newfoundland-2.00%
Northwest Territory-3.10%
Nova Scotia-1.96%
Ontario-1.47%
Prince Edward Is.-1.62%
Quebec-0.95%
Saskatchewan-1.51%
Yukon Territory-2.60%

1Q 2022 Canada
RCT Express® Cost Variations by Province

What's New

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

Cost Data Changes:

  • The 1st quarter 2022 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.

  • Window Material Selections Added For MMH
    NOTE:  These Material Selections are being added to the MMH user interface for 1Q22 (they are already available in the Main Street user interface).

    • MSID 030009: ‘Aluminum Sash with Glass’
      Made available for MMH house types.

    • MSID 030016: ‘Sash, Vinyl with Glass’
      Made available for MMH house types.

Non-Cost Data Changes:  RCT Express 4.x

  • Graphic User Interface Drop Down List
    NOTE:  These Material Selections are being added to the MMH user interface for 1Q22 (they are already available in the Main Street user interface).
    • MSID 030009 – ‘Aluminum Sash with Glass added to the ‘Exterior Extras’/’Windows’ drop down menu
    • MSID 030016 – ‘Sash, Vinyl with Glass added to ‘Exterior Extras’/’Windows’ drop down menu
  • Help Menu Files – Typical 1st Quarter MMH Historical Depreciation Table Update
    • Year Built ‘2023’ added to the table
    • Age ‘73’ added to the table
    • Depreciation percentages adjusted accordingly