Solutions

Residential Product Bulletin

3rd 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 Q1 2019 to Q2 2019, the average for U.S. building materials decreased by 1.1%. For labor, the average wage rate increased 0.5%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 0.7% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.5%.

 

                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit1.1%6.0%2.5%5.0%
Asphalt Shingles0.7%8.0%1.0%4.4%
Concrete Block0.9%2.9%2.6%4.9%
Drywall0.0%2.1%2.7%8.2%
Felt Paper-0.7%0.4%0.8%2.8%
Galvanized Pipe1.0%10.4%1.6%2.6%
Lumber-8.2%-1.9%-6.6%0.2%
Plywood-5.0%-14.5%-3.1%-8.0%
Ready Mix2.3%2.3%2.5%1.8%
Rebar0.3%6.9%-0.9%4.8%
Steel Deck0.5%7.5%1.7%2.5%
Steel Stud0.5%13.6%1.7%11.2%
Structural Steel-0.5%7.4%-0.1%9.3%
1/2″ Copper Pipe-0.5%-1.8%1.8%4.6%

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 2019 to Q2 2019, the average for U.S. building materials decreased by 1.1%. For labor, the average wage rate increased 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:

 

US2Q173Q174Q171Q182Q183Q184Q181Q19
Asphalt Shingles-0.4%-0.1%-0.2%0.3%1.7%2.9%2.4%0.7%
Romex Wire1.9%6.9%6.6%2.9%-1.0%-3.3%-2.4%-0.5%
1/2″ Drywall0.2%0.2%1.5%2.5%1.7%0.5%-0.2%0.0%
Felt Paper-0.3%-0.3%-0.3%0.3%0.5%0.7%-0.1%-0.7%
R-13 Fiber Batt Insulation-0.1%0.3%.02%-1.1%1.8%2.2%0.5%1.6%
2×4 Lumber6.3%3.9%1.6%5.3%6.8%-5.0%-8.2%-5.7%
1/2″ Plywood1.3%12.5%3.4%7.0%2.1%-5.3%-6.9%-5.0%
Ready Mix-0.4%1.2%2.8%-0.8%-0.4%0.1%0.3%2.3%
1/2″ Copper Pipe-0.8%-3.2%0.6%-0.1%-0.2%-1.6%-0.5%0.5%

 

 

StateQuarterly Variance
Alabama0.25%
Alaska-0.48%
Arizona0.52%
Arkansas0.44%
California0.37%
Colorado0.57%
Connecticut0.88%
Delaware0.24%
Florida0.30%
Georgia0.69%
Hawaii0.43%
Idaho0.59%
Illinois0.47%
Indiana0.47%
Iowa0.11%
Kansas0.56%
Kentucky0.28%
Louisiana0.44%
Maine0.46%
Maryland0.26%
Massachusetts0.79%
Michigan0.37%
Minnesota0.20%
Mississippi0.47%
Missouri0.57%
Montana-0.61%
Nebraska0.35%
Nevada0.33%
New Hampshire0.74%
New Jersey0.54%
New Mexico0.42%
New York0.72%
North Carolina0.57%
North Dakota0.43%
Ohio0.45%
Oklahoma0.15%
Oregon0.46%
Pennsylvania0.34%
Rhode Island0.93%
South Carolina0.48%
South Dakota0.41%
Tennessee0.17%
Texas0.26%
Utah0.01%
Vermont0.85%
Virginia0.46%
Washington0.47%
West Virginia0.31%
Wisconsin0.22%
Wyoming-0.21%

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 2019 to Q2 2019, the average change for Canadian building materials was an increase of 0.7% over the quarter. For labor, the average wage rate increased 0.5% 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-0.70.4%0.5%0.9%1.9%0.6%0.8%1.0%
Romex Wire-0.4%3.6%2.5%2.8%0.5%-0.5%0.7%-0.2%
1/2″ Drywall1.7%1.8%1.5%3.8%2.5%1.3%1.3%2.7%
Felt Paper-0.4%2.9%0.4%0.4%0.5%0.8%0.6%0.8%
R-13 Fiber Batt Insulation1.7%1.4%1.4%1.9%1.5%1.3%1.5%1.5%
2×4 Lumber7.9%4.3%1.5%3.2%8.5-4.1%-6.6%-5.9%
1/2″ Plywood10.0%10.3-2.05.44.5%-5.0%-4.4%-3.1%
Ready Mix-1.4%2.1%3.9%-3.5%-1.5%0.2%0.7%2.5%
1/2″ Copper Pipe-1.9%-0.4%0.1%-0.9%-0.2%0.3%2.2%1.8%

 

Canada Province by Province

Building Construction Index
Q2 2019

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

ProvinceQuarterly Variance
Alberta1.57%
British Columbia2.21%
Manitoba2.10%
New Brunswick1.37%
Newfoundland0.72%
Northwest Territory1.58%
Nova Scotia1.01%
Ontario1.59%
Prince Edward Island1.29%
Quebec1.29%
Saskatchewan1.21%
Yukon Territory1.70%

Canada Cost Variances by Province

Residential Reconstruction Costs
1Q21 to 2Q21

ProvinceQuarterly Variance
Alberta0.60%
British Columbia1.15%
Manitoba0.55%
New Brunswick1.36%
Newfoundland0.50%
Northwest Territory1.23%
Nova Scotia0.23%
Ontario1.15%
Prince Edward Is.0.94%
Quebec0.34%
Saskatchewan0.69%
Yukon Territory1.28%
 

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 Express

New User-Selected (non-default) “Foundation Types” for Substandard Soil Conditions – RCT Express 4.6

New “Foundation Types” were added to address building on substandard soil conditions. After substantial research into the current foundation solutions for building on collapsible and expandable soils, we have added 3 new substandard soil Foundation Types for each existing Foundation Type (21 total).

The new Foundation Types for substandard soil conditions are as follows:

Basement, Daylight – Moderate Soil

Basement, Daylight – Poor Soil

Basement, Daylight – Severe Soil

Basement, Below Grade – Moderate Soil

Basement, Below Grade – Poor Soil

Basement, Below Grade – Severe Soil

Basement, Walkout – Moderate Soil

Basement, Walkout – Poor Soil

Basement, Walkout – Severe Soil

Crawl Space, Excavated – Moderate Soil

Crawl Space, Excavated – Poor Soil

Crawl Space, Excavated – Severe Soil

Crawl Space, Unexcavated – Moderate Soil

Crawl Space, Unexcavated – Poor Soil

Crawl Space, Unexcavated – Severe Soil

Hillside – Moderate Soil

Hillside – Poor Soil

Hillside – Severe Soil

Slab at Grade – Moderate Soil

Slab at Grade – Poor Soil

Slab at Grade – Severe Soil

New User-Selected (non-default) “Foundation Types” for Typical Soil Conditions – RCT Express 4.6

2 additional, user-entered, Foundation Types were added to allow the user to select a crawlspace foundation that includes a concrete slab floor rather than the default dirt/stone floor. These 2 crawlspace Foundation Types are being added for “typical” soil conditions, not for substandard soil conditions.  They are as follows:

Crawl Space, Excavated, Concrete with Slab

Crawl Space, Unexcavated, Concrete with Slab

New Help Menu Files For The New and Existing Foundation Types – RCT Express 4.6

The Help Menu files will be updated to aid the user in selecting and entering the correct Foundation Type. These updates include revisions to the existing descriptions, additional descriptions for the new substandard soil conditions Foundation Types, and revisions to the instructions regarding how to correctly enter the various types of foundations.

Graphic User Interface Drop Down List Changes For “Foundation Type” – RCT Express 4.6

  • All of the new “Foundation Types” will be added to the GUI.

Assumption/Knowledge Table Changes For Single-Family Kitchen and Bath Quality In Colorado – RCT Express 4.0 & Higher

Our research indicates that single-family homes built in some Colorado mountain area zip codes after 2009 have higher quality kitchens and bathrooms than homes outside these zip codes. These changes to the quality assumptions will be implemented regardless of the home’s Total Living Area.  Kitchen and bathroom quantity assumptions will remain unchanged.  The affected zip codes and the assumption changes are as follows:

“Designer” kitchen and bath quality after 2009:

  • 80301, 80302, 80304

“Designer” kitchen and bath quality all years:

  • 80424, 80477, 80482, 80487, 80488, 81224, 81225, 81611, 81615, 81620, 81632, 81657

“Custom” kitchen and bath quality after 2009:

  • 80435, 80442, 80443, 80478, 80498, 81621, 81623

“Custom” kitchen and bath quality all years:

  • 81631

“Semi-Custom” kitchen and bath quality after 2009:

  • 80446, 80447, 81601, 81637

“Semi-Custom” kitchen and bath quality all years:

  • 80467

Assumption/Knowledge Table Changes For Attached Garages In Colorado– RCT Express 4.0 & Higher

Default attached garages will be added to homes in some Colorado zip codes to better reflect the current building trends in those areas. The garage size will be determined by the home’s Total Living Area.  This change applies only to homes built after 2009.  The affected zip codes are as follows:

  • 80301, 80302, 80304, 08424, 80435, 80442, 80443, 80446, 80447, 80467, 80477, 80478, 80482, 80487, 80488, 81224, 81225, 81611, 81615, 81620, 81631, 81632, 81657

Non-Cost Data Changes:  High Value 4.3.x and 4.2.x

  • None

Non-Cost Data Changes:  Mainstreet and Mobile Manufactured Housing (MMH)

  • None