Solutions

Commercial Product Bulletin

1st Quarter 2018

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 Q2 2018, the average for U.S. building materials increased by 2.5%.  For labor, the average wage rate increased by 0.4%, based on construction trade contracts that were renewed during the quarter.

  • The average change for Canadian building materials increased by 0.9% over the quarter. For labor, the average wage rate increased by 0.5%, 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                    Canada
 QuarterYearQuarterYear
Aluminum Conduit3.1%13.8%0.7%-1.9%
Asphalt Shingles0.3%-0.7%1.0%0.7%
Concrete Block0.9%3.1%0.9%3.9%
Drywall3.2%4.2%3.0%8.7%
Felt Paper0.1%-0.9%0.7%3.1%
Galvanized Pipe0.3%0.8%-1.0%-4.7%
Lumber3.8%18.7%1.5%18.3%
Plywood7.4%25.3%1.5%24.3%
Ready Mix0.2%3.2%-0.8%2.9%
Rebar5.2%4.2%2.1%1.7%
Steel Deck2.5%3.1%0.3%0.7%
Steel Stud2.9%5.6%2.0%3.2%
Structural Steel5.9%4.1%3.1%1.9%
1/2″ Copper Pipe0.7%-2.3%-0.4%-2.6%

National Average

Building Construction Index
Q2 2018

National AverageCommercialAgricultural
United States1.4%1.2%
Canada1.4%1.1%

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.

United States

U.S. Regional Weighted Commercial Cost Changes

In Q2 2018, the average for U.S. building materials increased by 2.5%, For labor, the average wage rate increased by 0.4%, 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 Changes 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Aluminum Conduit -0.4 -0.4 0.2 0.4 3.2 3.8 3.0 3.1
Concrete Block 0.9 0.5 0.4 0.6 1.0 0.5 0.7 0.9
Drywall 0.3 0.3 0.5 2.0 0.3 0.2 0.5 3.2
Galvanized Pipe -0.5 -0.9 -0.6 -0.1 0.5 0.1 -0.1 0.3
Ready Mix -0.6 -0.1 2.6 1.0 -0.5 -0.1 3.6 0.2
Rebar 0.6 0.6 1.2 0.3 0.2 -1.8 0.7 5.2
Steel Deck -2.1 -0.3 0.6 1.8 0.3 -0.1 0.3 2.5
Steel Stud 0.2 1.4 1.4 2.2 0.2 1.0 1.4 2.9
Structural Steel -0.6 0.3 0.3 2.5 -0.4 -1.1 -0.3 5.9
½” Cooper Pipe -0.1 -0.1 3.0 4.8 0.7 -2.8 -0.8 0.7

U.S. State by State

Building Construction Index Q2 2018

The table below provides a state by state snapshot of the changes in reconstruction costs for commercial and agricultural buildings.
State Commercial Agricultural
Alabama 1.40% 1.42%
Arizona 1.46% 1.47%
Arkansas 2.12% 1.73%
California 1.36% 1.32%
Colorado 1.19% 1.06%
Connecticut 0.78% 0.35%
Delaware 0.14% 0.10%
District of Columbia 0.67% 0.30%
Florida 1.43% 1.57%
Georgia 1.14% 0.91%
Idaho 1.73% 1.74%
Illinois 1.54% 1.35%
Indiana 1.23% 0.99%
Iowa 1.51% 0.73%
Kansas 1.19% 0.98%
Kentucky 1.76% 1.64%
Louisiana 1.12% 1.23%
Maine 0.78% 0.23%
Maryland 0.88% 0.67%
Massachusetts 1.14% 0.92%
Michigan 1.42% 1.33%
Minnesota 1.60% 1.41%
Mississippi 1.50% 1.21%
Missouri 1.07% 0.82%
Montana 1.25% 1.14%
Nebraska 1.81% 1.77%
Nevada 1.45% 1.23%
New Hampshire 1.29% 0.96%
New Jersey 0.48% 0.29%
New Mexico 1.33% 1.01%
New York 1.74% 1.47%
North Carolina 1.48% 1.22%
North Dakota 1.24% 1.10%
Ohio 1.28% 0.95%
Oklahoma 1.81% 1.72%
Oregon 1.64% 1.46%
Pennsylvania 0.77% 0.44%
Rhode Island 0.10% 0.0%
South Carolina 1.42% 1.22%
South Dakota 1.82% 2.05%
Tennessee 1.95% 2.00%
Texas 1.79% 1.53%
Utah 2.73% 1.90%
Vermont 0.85% 0.70%
Virginia 0.94% 0.83%
Washington 1.74% 1.37%
West Virginia 1.51% 1.06%
Wisconsin 1.28% 0.90%
Wyoming 1.38% 1.42%
Alaska 1.05% 0.57%
Hawaii 2.23% 2.40%
Q2 2018 Commercial
Q3 2018 Agriculture Construction Index

Canada

Canada Regional Weighted Commercial Cost Changes

The average change for Canadian building materials increased by 0.9% over the quarter. For labor, the average wage rate increased by 0.5%, 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:
Canada Quarterly Material Cost Changes 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Aluminum Conduit -0.9 -2.9 0.1 -1.7 -1.9 -0.7 -0.1 0.7
Concrete Block 0.8 0.7 0.6 1.1 1.1 0.8 1.0 0.9
Drywall -0.6 0.4 2.9 1.7 2.6 1.6 1.3 3.0
Galvanized Pipe -2.8 -2.5 -2.0 -1.8 -0.2 -1.9 -1.6 -1.0
Ready Mix -3.5 -1.0 3.9 -1.7 -0.9 -0.7 5.4 -0.8
Rebar 0.2 -0.1 0.1 -0.1 -0.2 -0.5 0.2 2.1
Steel Deck -0.6 0.0 -0.1 0.2 -0.2 0.1 0.5 0.3
Steel Stud 0.5 0.3 0.6 0.4 0.6 0.4 0.1 2.0
Structural Steel -0.1 -0.7 -0.4 0.2 -0.4 -0.6 -0.1 3.1
½” Cooper Pipe -2.3 -1.3 0.6 1.9 -0.7 -1.4 -0.1 -0.4

Canada Province by Province

Building Construction Index Q2 2018

The table below provide a province by province snapshot of the changes in reconstruction costs for commercial and agricultural buildings.
Province Commercial Agricultural
Alberta 1.35% 1.34%
British Columbia 1.29% 0.84%
Manitoba 1.07% 1.05%
New Brunswick 1.17% 1.44%
Nova Scotia 2.44% 1.44%
Ontario 1.25% 1.06%
Quebec 1.31% 1.11%
Saskatchewan 1.19% 1.07%
Newfoundland and Labrador 1.08% 0.59%
Prince Edward Island 0.71% 1.91%
Q2 2018 Commercial
q2_2018_us_ag-english

1353 – Row House, without Interior Finishes

This occupancy should be used when states or insurance policies do not require an association to be responsible for many of the interior components that are included in Occupancy 1350 – Row House.  For the electrical, all the wiring run within the walls is included, but fixtures are not.  The same is true for plumbing.  Hot and cold water pipes run within the walls along with sewer and ventilation stacks are included.  However, no water heaters, sinks, showers or toilets are included.  All interior partition walls are framed, dry walled, primed, but lack any wall finish found within the program.  The same is true for the floor and ceiling finishes.  This occupancy does include heating but does not include cooling.  This occupancy does not include any bathroom cabinets, kitchen cabinets or appliances.

Included

  • Exterior Doors and Windows
  • Interior Doors (Bathroom Doors, Bedroom Doors, Closet Doors)
  • Electrical Wiring
  • Exterior Wall Finish
  • Foundation
  • Concrete Slab
  • Heating System
  • Partition Wall Framing
  • Partition Wall Drywall – Taped and Primed
  • Plumbing without Fixtures
  • Roof
  • Stairs (When Applicable)
  • Structural Framing
  • Structured Wiring

Not Included

  • Appliances
  • Kitchen Cabinets
  • Bathroom Cabinets
  • Electrical Fixtures
  • Floor Finishes
  • Ceiling Finishes
  • Partition Wall Finishes
  • Plumbing Fixtures
  • Cooling
  • Window Treatments
  • Balconies
  • Decks
  • Swimming Pools
  • Elevators