Solutions

Residential Product Bulletin

2nd 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 Q4 2018 to Q1 2019, the average for U.S. building materials decreased by 1.8%. 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 a decrease of 0.5% 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 Conduit1.4%7.9%1.6%2.5%
Asphalt Shingles2.4%7.5%0.8%4.3%
Concrete Block1.0%3.2%0.2%3.8%
Drywall-0.2%4.7%1.3%9.3%
Felt Paper-0.1%1.4%0.6%2.3%
Galvanized Pipe1.5%10.9%1.6%0.3%
Lumber-8.2%-1.9%-6.6%0.2%
Plywood-6.9%-3.6%-4.4%0.1%
Ready Mix0.3%-0.7%0.7%-4.1%
Rebar0.0%15.5%-0.7%10.3%
Steel Deck0.4%11.5%-0.1%1.3%
Steel Stud0.5%13.6%1.7%11.2%
Structural Steel-0.5%19.2%-0.3%16.1%
1/2″ Copper Pipe-0.5%-2.4%2.2%1.9%

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 2018 to Q1 2019, the average for U.S. building materials decreased by 1.8%. 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 States2Q173Q174Q171Q182Q183Q184Q181Q19
Asphalt Shingles-0.2%-0.4%-0.1%-0.2%0.3%1.7%2.9%2.4%
Romex Wire5.8%1.9%6.9%6.6%2.9%-1.0%-3.3%-2.4%
1/2″ Drywall1.3%0.2%0.2%1.5%2.5%1.7%0.5%-0.2%
Felt Paper0.0%-0.3%-0.3%-0.3%0.3%0.5%0.7%-0.1%
R-13 Fiber Batt Insulation0.2%-0.1%0.3%0.2%-1.1%1.8%2.2%0.5%
2×4 Lumber5.5%6.3%3.9%1.6%5.3%6.8%-5.0%-8.2%
1/2″ Plywood3.2%1.3%12.5%3.4%7.0%2.1%-5.3%-6.9%
Ready Mix-0.2%-0.4%1.2%2.8%-0.8%-0.4%0.1%0.3%
1/2″ Copper Pipe4.0%-0.8%-3.2%0.6%-0.1%-0.2%-1.6%-0.5%

United States Cost Variances by State

 Building Construction Index

1Q19

StateQuarterly Variance
Alabama0.03%
Alaska-0.01%
Arizona0.18%
Arkansas0.05%
California0.02%
Colorado0.42%
Connecticut0.50%
Delaware0.25%
Florida0.20%
Georgia0.15%
Hawaii0.02%
Idaho0.09%
Illinois0.48%
Indiana0.32%
Iowa0.36%
Kansas0.17%
Kentucky0.26%
Louisiana0.34%
Maine0.30%
Maryland0.43%
Massachusetts0.58%
Michigan0.32%
Minnesota0.31%
Mississippi0.29%
Missouri0.27%
Montana-0.02%
Nebraska0.44%
Nevada0.41%
New Hampshire0.53%
New Jersey0.48%
New Mexico0.17%
New York0.42%
North Carolina0.21%
North Dakota0.41%
Ohio0.23%
Oklahoma0.04%
Oregon0.47%
Pennsylvania0.23%
Rhode Island0.43%
South Carolina0.29%
South Dakota0.28%
Tennessee0.23%
Texas0.13%
Utah0.39%
Vermont0.53%
Virginia0.36%
Washington0.18%
West Virginia0.26%
Wisconsin0.57%
Wyoming-0.01%

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 2018 to Q1 2019, the average change for Canadian building materials was a decrease of 0.5% 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:

 

Canada2Q173Q174Q171Q182Q183Q184Q181Q19
Asphalt Shingles-0.5%-0.7%0.4%0.5%0.9%1.9%0.6%0.8%
Romex Wire1.0%-0.4%3.6%2.5%2.8%-0.5%-0.5%0.7%
1/2″ Drywall1.4%1.7%1.8%1.5%3.8%2.5%1.3%1.3%
Felt Paper-0.4%-0.4%2.9%0.4%0.4%0.5%0.8%0.6%
 R-13 Fiber Batt Insulation0.4%1.7%1.4%1.4%1.9%1.5%1.3%1.5%
2×4 Lumber5.7%7.9%4.3%1.5%3.2%8.5%-4.1%-6.6%
1/2″ Plywood0.9%10.0%10.3%-2.0%5.4%4.5%-5.0%-4.4%
Ready Mix-2.7%-1.4%2.1%3.9%-3.5%-1.5%0.2%0.7%
1/2″ Copper Pipe0.9%-1.9%-0.4%0.1%-0.9%0.2%0.3%2.2%

Canada Cost Variances by Province

Building Construction Index
Q1 2019

 

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

ProvinceQuarterly Variance
Alberta0.95%
British Columbia1.00%
Manitoba0.90%
New Brunswick0.34%
Newfoundland1.23%
Northwest Territory1.24%
Nova Scotia1.57%
Ontario0.59%
Prince Edward Island-0.73%
Quebec0.40%
Saskatchewan0.31%
Yukon Territory1.65%

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 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.

Non-Cost Data Changes:

RCT Main Street, High Value, 4.x and Mobile Manufactured Housing Site Access Update

After review, the following Colorado zip codes will have an update in Site Access from “Flat Area/Easy Access Roads” to “Mountain Region”.

  • 80435, 80442,80443, 80498, 81632

After review, the following Colorado zip codes will have an update in Site Access from “Flat Area/Easy Access Roads” to “Isolated Rural Area”.

  • 80421, 80446, 80447, 80461, 80467, 80478, 81211, 81621, 81623

After review, the following Colorado zip codes will have an update in Site Access from “Flat Area/Easy Access Roads” to “Narrow Roads/Hillside Area”.

  • 81601, 81631, 81637, 81647

RCT Main Street, High Value, 4.x and Mobile Manufactured Housing Material Definition Update

To provide more clarity to the Photovoltaic System definitions we will be modifying the “Included in Cost” section to the highlighted verbiage below.

Photovoltaic System, 2 kWh

A photovoltaic solar panel system that uses solar cells to convert sunlight into electricity. The solar cells are combined into photovoltaic modules, which are connected together into a system or an array. The modules are mounted into a rack system based on installation location. Racks could be mounted to the ground or roof. The photovoltaic system produces electricity in the form of direct current, which is converted to alternating current using a solar inverter unit. The electricity generated is used by the structure or fed back to a grid system, such as a local or public power company grid.

Included in Cost: Roof mounted grid-tied photovoltaic solar panel system that generates 2 kilowatts (kW) of electricity, photovoltaic panels, DC/AC solar power inverter, aluminum rack system, combiner panel board, safety switches, lightning arrestors, grounding rod, conduit and wiring to power grid at service panel, feeder wire, connection and activation of photovoltaic array, and installation labor.

Enter the number of 2 kWh photovoltaic systems found in the home.

Photovoltaic System, 4 kWh

A photovoltaic solar panel system that uses solar cells to convert sunlight into electricity. The solar cells are combined into photovoltaic modules, which are connected together into a system or an array. The modules are mounted into a rack system based on installation location. Racks could be mounted to the ground or roof. The photovoltaic system produces electricity in the form of direct current, which is converted to alternating current using a solar inverter unit. The electricity generated is used by the structure or fed back to a grid system, such as a local or public power company grid.

Included in Cost: Roof mounted grid-tied photovoltaic solar panel system that generates 4 kilowatts (kW) of electricity, photovoltaic panels, DC/AC solar power inverter, aluminum rack system, combiner panel board, safety switches, lightning arrestors, grounding rod, conduit and wiring to power grid at service panel, feeder wire, connection and activation of photovoltaic array, and installation labor.

Enter the number of 4 kWh photovoltaic systems found in the home.

RCT 4.x Zip Code 72713 Attribute Change:

Total Living Area (TLA) is a key factor that RCT uses in determining whether a home is of “Main Street” quality, “High Value” quality, or anything in between. The TLA range where a home typically transitions from “Main Street” to “High Value” varies by zip code. After research, it was determined that zip code 72713 required an update in this TLA range to better represent the local market.

 

RCT 4.x Large Tract Home Release

The latest version of the RCT engine (version 6.3) will be released as part of the 2Q19 RCT update and will include a new feature that produces more accurate reconstruction valuations for Large Tract Homes. Large Tract Homes are production-built homes that are large in size similar to a High Value Homes but have features and finishes similar to Main Street Homes. The new feature will notify the user via an alert message when the property in question has been identified as a Large Tract Home. The user will have the option to calculate the property as either a Large Tract Home or as a standard valuation (Main Street Home). In addition, two knowledge table updates have been made to accommodate defaults associated with Large Tract Homes.

  • Properties identified and calculated as Large Tract Homes will default to a roof structure of “Wood Trusses & Sheathing” instead of “Rafters, Wood with Sheathing”.
  • Properties identified and calculated as Large Tract Homes will default to a window type of “Sash, Vinyl with Glass” instead of “Sash, Wood with Glass, Standard”.