Solutions

Residential Product Bulletin

3rd Quarter 2018

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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 Q1 2018 to Q2 2018, the average for U.S. building materials increased by 2.6%. For labor, the average wage rate increased 0.4%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 1.3% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 1.0%.

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 Conduit2.9%13.8%0.0%-1.4%
Asphalt Shingles0.3%-0.5%0.9%1.1%
Concrete Block1.2%3.3%1.5%4.3%
Drywall2.5%4.5%3.8%9.2%
Felt Paper0.3%-0.7%0.4%3.4%
Galvanized Pipe1.5%1.9%-0.7%-4.3%
Lumber5.3%18.2%3.2%17.9%
Plywood7.0%26.1%5.4%25.4%
Ready Mix-0.8%2.8%-3.5%0.9%
Rebar8.5%7.1%4.4%4.7%
Steel Deck4.2%4.8%0.5%1.0%
Steel Stud4.7%8.1%2.6%3.9%
Structural Steel10.4%8.7%6.1%5.6%
1/2″ Copper Pipe-0.1%-3.6%-0.9%-3.1%

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 Q1 2018 to Q2 2018, the average for U.S. building materials increased by 2.6%. For labor, the average wage rate increased 0.4%, 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 States3Q164Q161Q172Q173Q174Q171Q182Q18
Asphalt Shingles-0.3%0.1%0.1%-0.2%-0.4%-0.1%-0.2%0.3%
Romex Wire-1.7%-1.3%6.2%5.8%1.9%6.9%6.6%2.9%
1/2″ Drywall0.4%0.0%1.5%1.3%0.2%0.2%1.5%2.5%
Felt Paper-0.7%-0.1%0.5%0.0%-0.3%-0.3%-0.3%0.3%
R-13 Fiber Batt Insulation0.0%-0.4%0.5%0.2%-0.1%0.3%0.2%-1.1%
2×4 Lumber3.3%3.5%2.0%5.5%6.3%3.9%1.6%5.3%
1/2″ Plywood0.1%0.0%-0.1%3.2%1.3%12.5%3.4%7.0%
Ready Mix0.1%0.1%3.4%-0.2%-0.4%1.2%2.8%-0.8%
1/2″ Copper Pipe-0.3%0.7%4.4%4.0%-0.8%-3.2%0.6%-0.1%

United States Cost Variances by State

Residential Reconstruction Costs
2Q18 to 3Q18

StateQuarterly Variance
Alabama1.90%
Alaska0.94%
Arizona1.44%
Arkansas1.90%
California1.11%
Colorado1.30%
Connecticut1.27%
Delaware1.12%
Florida1.70%
Georgia1.57%
Hawaii1.50%
Idaho1.61%
Illinois1.47%
Indiana1.61%
Iowa1.63%
Kansas1.59%
Kentucky1.75%
Louisiana1.71%
Maine0.99%
Maryland1.08%
Massachusetts1.46%
Michigan1.41%
Minnesota1.57%
Mississippi1.91%
Missouri1.32%
Montana1.56%
Nebraska1.77%
Nevada1.23%
New Hampshire1.17%
New Jersey1.15%
New Mexico1.44%
New York1.48%
North Carolina1.90%
North Dakota1.48%
Ohio1.38%
Oklahoma1.62%
Oregon1.56%
Pennsylvania1.27%
Rhode Island1.62%
South Carolina1.85%
South Dakota1.67%
Tennessee1.95%
Texas2.02%
Utah1.61%
Vermont1.20%
Virginia1.57%
Washington1.53%
West Virginia1.51%
Wisconsin1.63%
Wyoming1.39%

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 Q1 2018 to Q2 2018, the average change for Canadian building materials was an increase of 1.3% over the quarter. For labor, the average wage rate increased 1.0% 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:

 

Canada3Q164Q161Q172Q173Q174Q171Q182Q18
Asphalt Shingles0.1%-1.1%0.8%-0.5%-0.7%0.4%0.5%0.9%
Romex Wire-1.5%-1.3%2.8%1.0%-0.4%3.6%2.5%2.8%
1/2″ Drywall-0.6%1.5%3.2%1.4%1.7%1.8%1.5%3.8%
Felt Paper0.3%-0.2%0.6%-0.4%-0.4%2.9%0.4%0.4%
 R-13 Fiber Batt Insulation0.2%-0.4%0.8%0.4%1.7%1.4%1.4%1.9%
2×4 Lumber1.5%3.0%2.4%5.7%7.9%4.3%1.5%3.2%
1/2″ Plywood0.1%2.7%0.9%0.9%10.0%10.3%-2.0%5.4%
Ready Mix-2.3%0.5%3.6%-2.7%-1.4%2.1%3.9%-3.5%
1/2″ Copper Pipe-1.8%-1.0%2.1%0.9%-1.9%-0.4%0.1%-0.9%
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Canada Cost Variances by Province

Residential Reconstruction Costs
2Q18 to 3Q18

ProvinceQuarterly Variance
Alberta1.26%
British Columbia0.92%
Manitoba1.36%
New Brunswick0.49%
Newfoundland0.88%
Northwest Territory1.03%
Nova Scotia1.07%
Ontario1.38%
Prince Edward Is.-1.06%
Quebec1.41%
Saskatchewan0.74%
Yukon Territory0.71%

 

 

 

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 third 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:

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

Based on client inquiry and review with the business team, updates have been made to the following RCT Main Street and MMH material names to provide clarity to the end user.

  • MSID 030203 “Solar Panels” will be updated to “Solar Panel Water Heating System”
  • MSID 030204 “Photovoltaic System, Average” will be updated to “Photovoltaic System, 2 kWH”
  • MSID 030205 “Photovoltaic System, Large” will be updated to “Photovoltaic System, 4 kWH”

RCT High Value and 4.x

The following RCT High Value materials have had the “Included in Cost” section of the material definition updated to provide better clarity as to what costs are included in the material.

  • Enclosed Porch, Custom
    • Previous: Included in Cost: Wood exterior walls, shingle roof, custom interior finishes, windows and glass, and exterior wood door.
    • Updated: Included in Cost: Foundation, wood exterior walls, shingle roof, custom interior finishes, windows and glass, and exterior wood door.
  • Enclosed Porch, Small
    • Previous: Included in Cost: Wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
    • Updated: Included in Cost: Foundation, wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
  • Enclosed Porch, Large
    • Previous: Included in Cost: Wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
    • Updated: Included in Cost: Foundation, wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
  • Enclosed Porch, Medium
    • Previous: Included in Cost: Wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
    • Updated: Included in Cost: Foundation, wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
  • Enclosed Porch, Square Feet
    • Previous: Included in Cost: Wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.
    • Updated: Included in Cost: Foundation, wood exterior walls, shingle roof, painted drywall interior finish, standard windows and glass, and exterior wood door.

Knowledge Table Changes:

RCT High Value and 4.x

Based on client inquiry and additional research, the RCT High Value knowledge tables have been updated to better represent the most common foundation type in zip codes 46143, 46237, 46368, and 47630. The foundation type has been updated from “Basement, Below Grade” to “Slab at Grade”