Solutions

Residential Product Bulletin

2nd Quarter 2018

div_top-left_white

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 Q4 2017 to Q1 2018, the average for U.S. building materials increased by 1.6%. For labor, the average wage rate increased 0.6%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 0.4% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate was unchanged.

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 States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit1.5%11.1%0.0%-3.7%
Asphalt Shingles-0.2%-1.0%0.5%-0.4%
Concrete Block0.6%2.8%0.5%3.9%
Drywall1.5%3.3%1.5%6.6%
Felt Paper-0.3%-1.0%0.4%2.5%
Galvanized Pipe0.0%0.4%-1.5%-4.9%
Lumber1.6%18.5%1.5%20.9%
Plywood3.4%21.6%-2.0%20.1%
Ready Mix2.8%3.4%3.9%1.8%
Rebar0.5%-0.7%0.7%0.2%
Steel Deck0.4%1.8%0.5%0.6%
Steel Stud1.7%4.6%0.3%1.9%
Structural Steel0.0%0.0%0.5%-0.4%
1/2″ Copper Pipe0.6%0.4%0.1%-1.3%



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 1st quarter. From Q4 2017 to Q1 2018, the average for U.S. building materials increased by 1.6%. For labor, the average wage rate increased 0.6%, 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 States 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Asphalt Shingles -0.4% -0.3% 0.1% 0.1% -0.2% -0.4% -0.1% -0.2%
Romex Wire -3.2% -1.7% -1.3% 6.2% 5.8% 1.9% 6.9% 6.6%
1/2″ Drywall 0.1% 0.4% 0.0% 1.5% 1.3% 0.2% 0.2% 1.5%
Felt Paper -1.3% -0.7% -0.1% 0.5% 0.0% -0.3% -0.3% -0.3%
R-13 Fiber Batt Insulation 0.7% 0.0% -0.4% 0.5% 0.2% -0.1% 0.3% 0.2%
2×4 Lumber -0.3% 3.3% 3.5% 2.0% 5.5% 6.3% 3.9% 1.6%
1/2″ Plywood -1.0% 0.1% 0.0% -0.1% 3.2% 1.3% 12.5% 3.4%
Ready Mix -0.7% 0.1% 0.1% 3.4% -0.2% -0.4% 1.2% 2.8%
1/2″ Copper Pipe -1.8% -0.3% 0.7% 4.4% 4.0% -0.8% -3.2% 0.6%

United States Cost Variances by State

Residential Reconstruction Costs 1Q18 to 2Q18

State Quarterly Variance
Alabama 0.86%
Alaska 0.94%
Arizona 0.96%
Arkansas 0.78%
California 0.80%
Colorado 0.90%
Connecticut 0.68%
Delaware 0.77%
Florida 0.65%
Georgia 1.18%
Hawaii 1.21%
Idaho 0.86%
Illinois 1.23%
Indiana 1.07%
Iowa 1.17%
Kansas 1.16%
Kentucky 1.21%
Louisiana 0.90%
Maine 0.78%
Maryland 0.89%
Massachusetts 0.92%
Michigan 1.00%
Minnesota 1.09%
Mississippi 1.12%
Missouri 1.16%
Montana 0.94%
Nebraska 0.90%
Nevada 0.93%
New Hampshire 0.54%
New Jersey 0.63%
New Mexico 0.67%
New York 0.70%
North Carolina 1.16%
North Dakota 1.22%
Ohio 0.98%
Oklahoma 1.07%
Oregon 1.13%
Pennsylvania 0.91%
Rhode Island 0.65%
South Carolina 1.17%
South Dakota 1.23%
Tennessee 1.17%
Texas 1.03%
Utah 0.76%
Vermont 0.62%
Virginia 1.09%
Washington 1.31%
West Virginia 0.92%
Wisconsin 1.38%
Wyoming 0.69%

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 Q4 2017 to Q1 2018, the average change for Canadian building materials was an increase of 0.4% over the quarter. For labor, the average wage rate was unchanged 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:  
Canada 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Asphalt Shingles -0.3% 0.1% -1.1% 0.8% -0.5% -0.7% 0.4% 0.5%
Romex Wire -2.1% -1.5% -1.3% 2.8% 1.0% -0.4% 3.6% 2.5%
1/2″ Drywall 0.6% -0.6% 1.5% 3.2% 1.4% 1.7% 1.8% 1.5%
Felt Paper 0.2% 0.3% -0.2% 0.6% -0.4% -0.4% 2.9% 0.4%
 R-13 Fiber Batt Insulation 0.7% 0.2% -0.4% 0.8% 0.4% 1.7% 1.4% 1.4%
2×4 Lumber -0.4% 1.5% 3.0% 2.4% 5.7% 7.9% 4.3% 1.5%
1/2″ Plywood -2.7% 0.1% 2.7% 0.9% 0.9% 10.0% 10.3% -2.0%
Ready Mix -2.5% -2.3% 0.5% 3.6% -2.7% -1.4% 2.1% 3.9%
1/2″ Copper Pipe -2.8% -1.8% -1.0% 2.1% 0.9% -1.9% -0.4% 0.1%

Canada Cost Variances by Province

Residential Reconstruction Costs 1Q18 to 2Q18

Province Quarterly Variance
Alberta 1.15%
British Columbia 0.91%
Manitoba 0.33%
New Brunswick 0.37%
Newfoundland 0.92%
Northwest Territory 1.53%
Nova Scotia 0.20%
Ontario 0.33%
Prince Edward Is. -0.76%
Quebec 0.33%
Saskatchewan 0.55%
Yukon Territory 1.46%

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 second 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.

Non-Cost Data Changes:


None